BDC Capital announces Bridge Financing Program
By Arik Brodbent and Andrea Johnson
In addition to other measures being taken to manage the impacts of the COVID-19 crisis, the investment arm of the Business Development Bank of Canada (BDC Capital) has announced that it is launching a Bridge Financing Program.
Under the Bridge Financing Program, BDC Capital will co-invest in Canadian firms by way of a convertible note, alongside eligible venture capital firms.
To be eligible, a company must:
- have raised at least CA$500,000 in external capital before applying;
- be backed by a qualified venture capital firm; and
- be specifically impacted by the COVID-19 pandemic.
Investments will also be subject to BDC Capital’s due diligence and investment committee review and approval process. Interested companies are asked to speak to their lead investor, or if already a BDC portfolio company, the BDC Capital partner they work with.
The details of which venture capital firms will be eligible, or how firms will be selected, has not been released at this time, however, venture capital firms looking to participate can contact BDC Capital at VCReliefProgram@bdc.ca to discuss their eligibility.
It is anticipated that more details will be provided in the coming days. If you have questions about this program or would like to receive an update as more details are released, please contact a member of Dentons’ Canadian Venture Technology and Emerging Companies group.