BDC Capital is launching inject $135-million into 15 to 20 energy and cleantech-focused startups as part of a new venture capital fund.
The new fund will invest in “late seed and Series A companies with some Series B firms also considered.” BDC anticipates an initial five-year investment period followed by another five-year harvest period “during which exits are anticipated.”
“Our goal is to intensify our support for innovative Canadian entrepreneurs who are leading the way in the transition to a low-carbon economy,” said BDC Caputal’s executive VP, Jérôme Nycz. “Our first ICE fund demonstrated strong performance against international peers in a market that is a key target industry for the government of Canada.”
The BDC Capital Industrial, Clean and Energy Technology (ICE) Venture Fund II follows 2011’s ICE Venture Fund I. BDC’s ICE team now has $287 million under management.
BDC Capital’s first ICE fund invested in 18 firms, including quantum computing pioneer D-Wave Systems, IoT software provider Bit Stew, data center power management provider RANOVUS, CO2 utilization company CarbonCure, and power conversion innovator GaN Systems.
“We seek to bring Canadian technologies to the world and accelerate resource efficiency, while targeting significant investment returns,” said Tony Van Bommel, a senior managing partner of ICE Funds I and II. “Our existing fund has invested in all regions of the country and includes some of Canada’s most successful venture-backed companies.”
BDC Capital is the investment arm of BDC with more than $2 billion under management.