BDC Launches $400 Million Climate Technology Fund II | Information direction

The Business Development Bank of Canada (BDC), a bank for Canadian entrepreneurs, last week launched its new C$400 million Climate Technology Fund II, reaffirming BDC’s commitment to play a leading role in building successful Canadian cleantech companies.

The announcement raises the fund’s investment in the innovative clean and climate technology sector to CAD 1 billion.

This is the second fund launched by BDC. In 2018, the company launched a C$600 million Cleantech Fund I to address the lack of venture capital to commercialize and scale Canada’s cleantech and climate technology industry.

Susan Rohack, photo: BDC

“What we want to do is continue to build on the success of Fund I and support Canadian cleantech companies that we think have two things that we really want to see: economic growth in Canada and support for companies that can export and increase your employment and income. but also companies that will have the ability to reduce our GHG (greenhouse gas) emissions and help us reach our emission reduction targets by 2030 and 2050, said Susan Rohak, Managing Partner of the Climate Technology Fund at BDC.

The first BDC fund backed 50 Canadian cleantech companies and also backed three like-minded Canadian indirect venture capital funds, ensuring the ecosystem has enough money to continue investing in the sector.

Ms. Rogach noted that the 2018 fund was very successful.

“The companies we have in this portfolio have been recognized as winners of the Global Cleantech 100 over the past two years, confirming that we stand behind some of the good companies. Another interesting fact is that for every dollar we have invested directly in these companies, another $6 of the private sector has been invested with us or after us, further confirming that the companies we support are able to “increase the amount of capital they need to keep going.” grow and scale,” she said.

According to Susan Rohak, cleantech companies face unique challenges. The main issue that BDC focuses on is that many of these companies have a capital-intensive business model, which means it takes time to get to the commercialization stage.

“These companies have to build a demonstration plant first, then a pilot plant before they get to their full-scale plant, which can take many, many years and a lot of capital investment. So you need investors who can continue to support these companies as they grow and need additional capital,” she said. “You also need patient investors because they are not like the software developers you can build in your garage and resell in two years. So they really need a lot more capital and a longer maturation to bring them to full commercialization. »

Some of the companies featured in the BDC portfolio include Svante, a British Columbia-based carbon capture company that captures CO2 directly from industrial sources with less than half the capital cost of existing solutions, and Silfab Solar of Mississauga, a leading solar panel manufacturer in North America. America, Ms. Rojak added.

“We believe it has huge potential for further growth as Canada, the United States and many other countries look to replace their energy with renewables. Solar panels will play a big role.

This latest BDC decision will help support Canada in its sustainable development efforts. The country is currently ranked second in the Global Cleantech Innovation Index, up from seventh in 2014. According to the company, the global cleantech market is expected to double in value to reach over $400 billion by 2026.

“More than 170 countries have said they want to be carbon neutral by a specific date. And similarly, many large companies have also indicated that they are on track to become a carbon neutral company. And I don’t think we can do it without these technologies and without developing these technologies. So I think it’s extremely important for Canada to support our local technology. »

The original article is available at IT world of Canadasister publication Information direction.

French adaptation and translation by Renaud Larue-Langlois.