According to a letter shared by the Canadian Venture Capital and Private Equity Association (CVCA), BDC Capital today launched the BDC Capital Bridge Financing Program meant to support venture-backed companies with matching investments.
The idea behind the program is to support Canadian companies impacted by COVID-19 that may not qualify for many of the existing federal government relief measures. Through the program, BDC is set to invest alongside venture firms and, according to the CVCA, BDC Capital will also accelerate more capital into General Partners (GPs) in Canada as well as increase its co-investment activity.
According to the CVCA letter sent to members and obtained by BetaKit, BDC Capital, the investment arm of the Business Development Bank of Canada, may match, via a convertible note, current financing rounds being raised through “qualified existing and/or new investors made in an eligible company.”
The program is something that the CVCA has been calling for, along with a number of other measures it hoped government would take to better support the innovation sector. Last week, The Logic reported that such a program was in the works and sources that spoke to BetaKit on background confirmed that BDC and the CVCA had been in talks and that a program much-aligned with the CVCA’s recommendations was imminent. Notably, BDC Capital executive vice president Jérôme Nycz is on the board directors for the CVCA.
In its letter, the CVCA noted it is pleased that BDC Capital has launched the program, adding that it is “ideal for high potential companies who have investor syndicates that are willing to support them.”
According to the letter, in order to be eligible companies must be Canadian-based, venture-backed, and have raised at least $500,000 in external capital before applying. Importantly, companies must also be specifically impacted by COVID-19.
It is noted that any matching investment from BDC Capital will be subject to due diligence review, agreement on terms of the investment, and approval by a BDC investment committee.
The CVCA claimed BDC Capital has already been in touch with some of its investment partners, but all venture capital firms are welcome to see if they are eligible for the program. Startups are being encouraged to speak to their shareholder or investors and companies directly in BDC Capital’s portfolio should speak to their partner.
BetaKit has reached out to BDC Capital and the CVCA for comment.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in the technology and base meta sectors, while U.S. stock markets also climbed higher.
The S&P/TSX composite index was up 106.70 points at 24,179.21.
In New York, the Dow Jones industrial average was up 280.87 points at 42,361.24. The S&P 500 index was up 26.51 points at 5,777.64, while the Nasdaq composite was up 69.52 points at 18,252.44.
The Canadian dollar traded for 73.08 cents US compared with 73.22 cents US on Tuesday.
The November crude oil contract was down 67 cents at US$72.90 per barrel and the November natural gas contract was down eight cents at US$2.66 per mmBTU.
The December gold contract was down US$2.30 at US$2,633.10 an ounce and the December copper contract was down five cents at US$4.41 a pound.
This report by The Canadian Press was first published Oct. 9, 2024.
