How to Use BDC Growth Capital to Scale Your Business Internationally

By GrantHub Research Team · · Lire en français

How to Use BDC Growth Capital to Scale Your Business Internationally

Expanding outside Canada takes more than ambition. You need the right capital, experienced partners, and enough funding to manage risk. BDC Growth Capital, delivered through BDC Capital’s Growth Equity Partner program, is designed for established Canadian companies that want to grow in Canada and abroad without taking on traditional debt.

BDC Growth Capital offers equity financing. This means BDC invests alongside you to support long-term growth, including international expansion.


What Is BDC Capital — Growth Equity Partner?

BDC Capital — Growth Equity Partner provides minority equity investments to profitable Canadian companies with strong management teams and proven business models. The goal is to help you scale faster, including entering new international markets.

Key program details:

  • Funding amount: $3 million to $35 million per company
  • Type of funding: Minority equity investment (not a loan)
  • Jurisdiction: Federal (Canada-wide)
  • Program status: Open
  • Who delivers it: BDC Capital, the investment arm of the Business Development Bank of Canada

Because this is equity, you do not make monthly repayments. BDC usually exits later through a sale, recapitalization, or IPO.


How BDC Growth Capital Supports International Scaling

BDC Growth Capital is a fit when international growth is a clear, near-term goal—not just a future idea.

You can use growth equity to fund:

  • Market entry costs like opening local subsidiaries, offices, or working with distribution partners
  • International sales and marketing teams
  • Strategic acquisitions outside Canada
  • Product localization for foreign markets
  • Working capital for longer international sales cycles

BDC does more than provide money. As a growth equity partner, it often brings:

  • Strategic advice at the board level
  • Access to international networks and co-investors
  • Experience helping Canadian firms expand globally

Tools like GrantHub’s eligibility matcher can also help you find grants or advisory programs that work well with equity financing, filtered by province and industry in seconds.


Eligibility Requirements You Need to Meet

BDC Growth Capital is selective. It is not for early-stage startups or pre-revenue companies.

You generally need:

  • An established, profitable Canadian business
  • A proven product or service with market traction
  • An experienced management team with financial commitment to the business
  • A history of stable, positive cash flow
  • A credible plan for scaling in Canada and/or internationally

International expansion makes your case stronger, but only if you show clear execution plans, target markets, and expected returns.


What the Application and Investment Process Looks Like

BDC Growth Capital investments take time. The process usually takes months, not weeks.

Typical steps include:

  1. Initial discussion with BDC Capital to see if there is a strategic fit
  2. Detailed due diligence, including financials, governance, and growth plans
  3. Valuation and term negotiation
  4. Investment approval and closing

Because this is equity, you should be ready to share detailed forecasts, international expansion timelines, and exit scenarios.


How BDC Growth Capital Fits With Grants and Other Funding

Growth equity does not replace grants—it can work alongside them.

Many companies use:

  • Grants for market research, export readiness, or hiring
  • Loans for equipment or asset purchases
  • BDC Growth Capital for large-scale international growth

Understanding how these tools interact is important. See also:

  • How Government Grants Interact with Loans and Equity Financing in Canada

Common Mistakes to Avoid

Applying to BDC too early
If your business is not profitable or lacks steady cash flow, you are unlikely to qualify.

Treating equity like a loan
BDC is a shareholder. Be ready for governance discussions and long-term alignment.

Weak international strategy
Saying you want to “enter the U.S. or Europe” is not enough. You need clear markets, timelines, and budgets.

Ignoring dilution
Equity funding means sharing ownership. Make sure founders and existing investors agree before applying.


Frequently Asked Questions

Q: Can BDC Growth Capital be used for international expansion?
Yes. Supporting growth in Canada and internationally is a core objective of the program.

Q: How much funding can my business receive?
BDC Growth Capital typically invests between $3 million and $35 million, depending on your company’s size and growth plans.

Q: Is this funding repayable like a loan?
No. This is equity financing. BDC earns its return through an exit event, not monthly repayments.

Q: Will BDC take control of my company?
No. BDC usually takes a minority position and acts as a strategic partner, not an operator.

Q: How long does the process take?
The timeline varies, but due diligence and approval typically take several months.


Next Steps

If you are planning serious international growth, BDC Growth Capital can provide the funding and support that grants and loans alone cannot offer. Combining equity, grants, and advisory programs can make your expansion more sustainable.

To see which grants, loans, and equity programs fit your business and international goals, try GrantHub’s database. GrantHub tracks hundreds of active programs across Canada, making it easier to find the right mix for your growth plans.


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