Graduates now eligible for BDC Capital convertible note investments
MONTREAL, Aug. 18, 2014 /CNW Telbec/ - BDC Capital, a subsidiary of the Business Development Bank of Canada (BDC), has entered into a three-year partnership with the University of Toronto Rotman School of Management's Creative Destruction Lab (CDL) high-tech venture accelerator. The Creative Destruction Lab has been in operation since 2012 and in that time has already generated more than $100 million in equity value. Its aim is to reach $1 billion.
With this partnership, BDC Capital becomes a Founding Partner of the CDL and will be actively involved in all aspects of the accelerator program, including having a seat on CDL's advisory board. Graduates of the CDL program will also now be eligible for BDC Capital's convertible note investment program. Prior to concluding this partnership, BDC Capital had already invested in six CDL graduates: OTI Lumionics, Whirlscape, PiinPoint, PUSH Design Solutions, LINKETT, and Kiwi Wearables. Since 2012, BDC Capital has invested a total of $13.2 million in 87 companies nationwide via its convertible note investment program, with private investors putting up an additional $38 million.
"We are looking to support as many of Canada's high-potential early-stage companies as we can, while connecting them to the mentorship and private investments that they need," says Dominique Bélanger, Vice-President, Strategic Investments and Partnerships at BDC Capital. "We're now looking to partner with other select accelerators that have demonstrated their ability to produce and support world-class venture-fundable startups in the IT, healthcare and industrial/clean/energy technology sectors. Rotman's Creative Destruction Lab is a perfect fit."
The CDL offers an eight-month program that leverages the faculty and industry networks of the renowned Rotman School of Management and draws in candidates from the technology-oriented faculties at the University of Toronto as well as those of other universities. It exists to speed the development and marketing of student-grown inventions that have strong commercial potential. The CDL's technology focus is diversified, and it welcomes companies from diverse industries. The CDL intends to expand its program to health-related technologies in the near future and will work closely with BDC Capital to make this happen.
"BDC Capital's participation enables us to take the Creative Destruction Lab further by developing ways to engage more ventures that are based on the world-class research conducted at Canadian universities," says Professor Ajay Agrawal, the program's Academic Director.
The application period for the third cohort of Creative Destruction Lab closes August 28, 2014. Interested ventures can apply here.
This partnership was made possible by Economic Action Plan 2013, in which the federal government requested the Business Development Bank of Canada (BDC) make available $100 million in additional funds to invest in high-growth firms as well as firms graduating from business accelerators.
BDC has other ongoing partnerships with GrowLab, Extreme Startups, HYPERDRIVE, FounderFuel, Execution Labs, Launch36, and Canada's Department of Foreign Affairs and International Trade's Canadian Technology Accelerators (CTA) program in the United States. Last June, BDC Capital also announced a collaboration with health sciences accelerator Accel-Rx.
About BDC Capital
A subsidiary of the Business Development Bank of Canada (BDC), BDC Capital offers a full spectrum of specialized financing and investment solutions to help Canadian entrepreneurs achieve their full growth potential. With more than $1 billion under management, BDC Capital takes a strategic, patient approach to nurture companies' development over the long term.
From venture capital to equity to growth and transition capital, our team of over 100 experienced, local professionals partner with entrepreneurs to identify and meet their needs on flexible terms. Some of the sectors in which we specialize include IT, industrial/clean/energy technology, and healthcare. For more information, please visit www.bdccapital.ca or follow us on Twitter at @BDC_Capital.
About the Creative Destruction Lab
Founded in 2012, the Creative Destruction Lab at the Rotman School of Management leverages the school's leading faculty and industry networks, inventions, and talent from world-class technology-oriented faculties at the University of Toronto and its location in one of the world's most culturally diverse cities and Canada's largest financial centre, Toronto.
SOURCE: Business Development Bank of Canada
For further information: Maria Constantinescu, Senior Advisor, Public relations, Business Development Bank of Canada, (514) 496-7146, [email protected]