Lack of access to early-stage funding for Canadian technology start-ups is an often raised roadblock to the growth and development of seed-stage IT companies in Canada, but a new $100 million fund aims to change that.
BDC Venture Capital IT Fund has announced it will invest $100 million in new commitments to support the development of promising early stage IT companies in Canada, building on the $50 million it has already committed to supporting technology start-ups.
“Canada’s IT sector is alive with great entrepreneurs eager to transform ideas into commercial success, jobs and growth,” said Robert Simon, senior managing partner of the BDC Venture Capital IT Fund, in a statement. “With this financing we will be able to provide the needed financial support to new ventures that show the promise of substantial return.”
Previous investments by the BDC Venture Capital IT Fund include Radian6, which was acquired by Salesforce, and Opalis, which was acquired by Microsoft. Its current investment portfolio includes Beyond the Rack, Layer7 and AppNeta.
Radian6 was one technology start-up that benefited from BDC investment before its acquisition by Salesforce.com.
“This is only one example of how today’s BDC Venture Capital is responding in a more concerted, more strategic and more focused way to the needs of Canada’s entrepreneurs,” said Paul Kirkconnell, executive vice-president of BDC Venture Capital, in a statement. “Beginning with the IT Fund and extending to our other dedicated funds of healthcare and energy/cleantech sectors, BDC VC is taking a leadership role in fostering the finest of Canadian ideas and new enterprise.”
The fund primarily invests in early stage companies focused on enterprise, internet or mobile, with initial financing rounds varying from $100,000 to $2-4 million.