The Business Development Bank of Canada (BDC) is committing an additional $200 million CAD to support early-stage Canadian startups working on transformative technologies for traditional industries, with a new focus on critical minerals.
“Canada’s productivity gap is especially acute in sectors like manufacturing, mining, and agriculture,” said BDC Capital EVP Geneviève Bouthillier, highlighting the potential for tech innovations to enhance efficiency and competitiveness in these areas.
The second Industrial Innovation Venture Fund will support Series A startups in AgTech, advanced manufacturing, food tech, and sectors like mining and oil and gas, with an emphasis on robotics, AI, and industrial software. This fund expands its focus to include critical minerals, aligning with Canada’s strategy to secure supply chains and support clean energy transitions.
BDC’s first fund backed 20 companies and revealed a need for further investment to address productivity challenges in traditional sectors. Fund II aims to support a similar number of companies and has already made three investments, including one in Vancouver-based Apera AI.
Despite tough market conditions and declining Canadian VC activity, Bouthillier emphasizes BDC’s role in supporting early-stage companies, providing crucial resources where other investors hesitate.
BDC is re-evaluating its strategies as existing funds end, committing nearly $1 billion to late-stage tech initiatives and reassessing its approach to intellectual property financing and other areas. As government defence spending increases, BDC plans to enhance its support for the sector, with further details expected in the future.