BDC Capital this week announced plans to launch a $135 million venture capital fund to support Canadian energy and cleantech startups.
BDC Capital Industrial, Clean and Energy Technology Venture Fund II will invest in up to 20 high-impact Canadian startups that demonstrate efficiency and strong scalability.
“Our goal is to intensify our support for innovative Canadian entrepreneurs who are leading the way in the transition to a low-carbon economy,” says Jérôme Nycz, Executive Vice President, BDC Capital.
Fund II is a follow-on to BDC Capital’s ICE Venture Fund I, which was launched in 2011.
“Our first ICE fund demonstrated strong performance against international peers in a market that is a key target industry for the government of Canada,” Nycz said.
BDC Capital’s first ICE fund invested in 18 firms, including quantum computing pioneer D-Wave Systems and IoT software provider Bit Stew, which was recently acquired by General Electric.
“This new fund carries on our successful model of investing in highly scalable, capital-efficient ventures,” says Tony Van Bommel, senior managing partner of ICE Funds I and II.
Fund II will invest in late seed and Series A companies, with some Series B firms also considered.
“We seek to bring Canadian technologies to the world and accelerate resource efficiency, while targeting significant investment returns,” Bommel said.
The fund envisages an initial five-year investment period followed by a five-year harvest period during which exits are anticipated, according to BDC.