Many Canadian venture capital (VC) fund managers look for major investors who offer more than just financial support. BDC Capital Fund Investments provides this kind of partnership. Through this federal program, the Business Development Bank of Canada (BDC) invests in VC funds that support Canadian technology companies, with a strong focus on long-term impact on Canadian innovation and diversity.
Unlike startup grants, this funding is not for operating companies. It is designed for venture capital fund managers who are raising and managing funds that meet high professional standards.
BDC Capital Fund Investments is a federal investment program that supplies equity capital to venture capital fund managers. BDC invests as a limited partner (LP) in eligible funds, alongside private and other large investors.
Key facts:
BDC’s main goal is to strengthen Canada’s innovation economy by supporting fund managers who invest in technology-focused Canadian companies, especially in areas that are underserved or have high potential.
To qualify for BDC Capital Fund Investments, your fund must meet specific structural and strategic requirements. BDC reviews applications carefully, like big investment funds do.
BDC considers applications from:
Your fund must demonstrate:
BDC also runs the Thrive Platform, a dedicated stream within Fund Investments.
To qualify, your fund must:
This platform was created to help close gender gaps in venture capital access.
BDC does not publish fixed investment amounts.
Instead:
Because this is an equity investment, BDC expects returns over the life of the fund.
BDC’s process is similar to raising money from big investors in Canada rather than applying for a typical government grant.
Steps usually include:
Timelines vary and can take several months, depending on how complex the fund is.
Tools like GrantHub’s eligibility matcher can help you quickly compare federal and provincial funding programs by business type, structure, and investment focus, especially if you are looking at BDC alongside other innovation funding options.
Applying as a startup
BDC Fund Investments does not invest directly in operating companies. Applications must come from fund managers.
Weak Canadian strategy
Funds without a clear and measurable Canadian investment mandate are often screened out early.
Treating DEI as optional
BDC expects real policies, leadership representation, and ongoing action — not just statements added at the last minute.
Underestimating due diligence
Missing governance documents or unclear fund economics can slow down or end an application.
Q: Is BDC Capital Fund Investments a grant?
No. It is an equity-based investment. BDC becomes a limited partner in your fund and expects financial returns.
Q: Does BDC invest directly in startups?
No. BDC invests in venture capital fund managers, who then invest in Canadian technology companies.
Q: What types of funds does BDC prioritize?
BDC prioritizes technology-focused funds that match Canada’s strengths and areas that need more innovation funding.
Q: How long does the due diligence process take?
There is no set timeline. The process includes a full review of your fund and can take several months.
Q: Can first-time fund managers apply?
BDC may consider new managers, but strong governance, team experience, and risk controls are very important for approval.
After checking your eligibility, remember that GrantHub tracks hundreds of active grant and investment programs across Canada — use it to see which ones fit your fund’s structure and goals.
Was this article helpful?
Rate it so we can improve our content.
Canada Proactive Disclosure Data
The Canadian government has funded over 400,000 businesses through 1.27 million grants and contributions. Check your eligibility in 60 seconds.