BDC Launches $150-Million Fund for Life Sciences Startups
The Business Development Bank of Canada (BDC) has officially launched a new $150-million CAD venture capital fund dedicated to directly investing in early-stage life sciences companies. Managed by Parimal Nathwani, the former head of Toronto Innovation Acceleration Partners, the fund targets seed and Series A-stage ventures in therapeutics and medical technology sectors. BDC Capital aims to address a significant market gap in access to capital for these capital-intensive industries, which have seen a sharp decline in investment recently. The fund plans to support 10 to 15 companies, with initial investments ranging from $1 million to $3 million at the seed stage and $5 million to $8 million at Series A. This initiative marks BDC's strategic return to the life sciences sector, acknowledging that its previous withdrawal was premature. The move responds to industry concerns regarding insufficient specialized capital in Canada compared to the United States, aiming to provide patient capital that complements private markets and fosters growth in biotechnology and medical devices.
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BDC Launches $150-Million Fund for Life Sciences Startups
The Business Development Bank of Canada (BDC) has officially launched a new $150-million CAD venture capital fund dedicated to directly investing in early-stage life sciences companies. Managed by Parimal Nathwani, the former head of Toronto Innovation Acceleration Partners, the fund targets seed and Series A-stage ventures in therapeutics and medical technology sectors. BDC Capital aims to address a significant market gap in access to capital for these capital-intensive industries, which have seen a sharp decline in investment recently. The fund plans to support 10 to 15 companies, with initial investments ranging from $1 million to $3 million at the seed stage and $5 million to $8 million at Series A. This initiative marks BDC's strategic return to the life sciences sector, acknowledging that its previous withdrawal was premature. The move responds to industry concerns regarding insufficient specialized capital in Canada compared to the United States, aiming to provide patient capital that complements private markets and fosters growth in biotechnology and medical devices.
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