According to the Business Development Bank of Canada’s latest Venture Capital landscape report, VC investment activity in Canada declined across all stages in 2023.
In response, BDC this week committed an additional $500 million to its Growth Venture Fund and $450 million to its Growth Equity Partners program in a bid to “help buoy the current chilling effect within the investment ecosystem.”
Economic conditions “continue to challenge the ability of Canadian entrepreneurs to raise capital,” according to BDC.
“We are leaning into our role as Canada’s development bank,” explains Isabelle Hudon, chief executive officer of BDC. “We fundamentally believe that our economic resilience begins and ends with the Canadian entrepreneur.”
“Investing in our best and brightest is always a winning strategy,” Hudon continued, “whether it’s responding to the short-term uncertainty like tariffs and inflation or shoring up our long-term economic prosperity”.
The bank’s investment arm, BDC Capital, has built a total of 12 different funds that span sectors and the full business growth cycle.
“A healthy ecosystem requires a balance of funding across all stages of the business lifecycle,” notes Geneviève Bouthillier, Executive Vice-President of BDC Capital. “That’s why BDC acts as an enabler, offering support and financing to all entrepreneurs, regardless of their size, stage, or sector.”
BDC has already poured some of its new capital into a wave of Canadian companies.
This wave includes Certn out of Victoria. An innovator in background screening technology, Certn helps businesses know who they are hiring and renting to.
The fast-growing B.C. firm is set to receive $30M from BDC through the Growth Venture Fund. Certn will apply the capital to further expand its AI tech and market reach, according to a statement.
“BDC’s partnership represents a significant milestone for Certn and reflects their confidence in our leadership and strategic direction,” commented Andrew McLeod, CEO of Certn. “This investment accelerates our mission to enhance trust and supports our ambitious growth trajectory.”
Launched last year, the GVF program is slated to invest up to $100M annually in late-stage companies that leverage innovative technologies and business models in areas such as Artificial intelligence, Blockchain, and Cybersecurity.
Since launching in 2017, BDC’s GEP program has invested over $440 million across 36 Canadian companies.
Certn’s $30M investment from BDC highlights the growing need for advanced background screening technology. As hiring and rental decisions become more data-driven, innovations in AI-powered screening are shaping the future of trust and security. It will be interesting to see how this funding fuels Certn’s expansion. What are your thoughts on AI in background screening?