BDC to commit close to $1 billion to spur economic growth in Canada

Whats Happening:

BDC Capital, the investment arm of the Business Development Bank of Canada, is committing an additional $950 million to support Canadian businesses. This includes $500 million for its Growth Venture Fund and $450 million for its Growth Equity Partners program. The move aims to help Canada's next generation of global champions access capital and counter the current chilling effect in the investment ecosystem.

Key Moves:

• BDC Capital commits $500 million to Growth Venture Fund

• BDC Capital commits $450 million to Growth Equity Partners program

• Investment targets later-stage companies facing challenges and promising early-stage firms

By The Numbers:

• Total new commitment: $950 million

• Growth Venture Fund investment: up to $100M per year in late-stage tech companies

• Growth Equity Partners has invested over $440 million in 36 Canadian companies since 2017

Key Quotes:

• "We are leaning into our role as Canada's development bank," says Isabelle Hudon, President and CEO, BDC.

• "A healthy ecosystem requires a balance of funding across all stages of the business lifecycle," says Geneviève Bouthillier, Executive Vice-President, BDC Capital.

• "By investing in their growth, BDC is propelling a variety of Canadian champions for the next decade."

Bottom Line:

BDC's significant capital commitment aims to bolster Canada's economic resilience by supporting entrepreneurs across various growth stages. This strategic investment targets both later-stage companies facing challenges and promising early-stage firms, with the goal of fostering the next generation of global champions and countering current investment uncertainties.

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