Information on legal and business topics from Canadian business lawyer Shane McLean

BDC gets a new pool of money

Posted by Shane McLean on June 24, 2009

Last week the Canadian Federal Government announced that it is providing an additional $450 million in funds to the Business Development Bank of Canada “in support of small and medium-sized enterprises and innovative firms”.  This is part of the government’s “stimulus package” and hopefully it will trickle down to capital starved startups as quickly as possible.  The BDC has been one of the more active seed and early stage investors in recent years, filling some of the void left by the general retreat of private venture capital we have seen.    According to the  announcement, $350 million of this money is earmarked for venture capital style investment with $90 million of that in the form of direct investment in VC funds (who will, presumably, put that money to work by investing it in companies).  $125 million is supposed to be rolled out in the next year with the balance to trickle out later.

Check out the government’s announcement.


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