The Business Development Bank of Canada is launching a $160 million fund to invest in companies that have a portfolio of intellectual property.
BDC Capital, the investment arm of the Business Development Bank of Canada, has launched a new fund that will provide firms with financing via mezzanine, subordinate or convertible debt, or equity to accelerate growth. Private and public Canadian companies with at least $1 million in annual revenues can tap the firm’s resources.
The bank plans to lend between $3 million to $10 million to companies and could also offer follow-up investments as the firms evolve. It is not uncommon for a company to have more value in its intellectual property than in its tangible assets.
While many of the most promising companies are built on intangible assets, especially their patents, trademarks and brands, they often struggle to access capital. BDC’s new team has five people and is looking to hire a partner in Montreal and another in Vancouver.
