BDC Capital — Growth Equity Partner
Canada
Equity investments for Canadian entrepreneurs
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateJune 27, 2022
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Construction
- Manufacturing
- Wholesale trade
- Retail trade
- Transportation and warehousing
- Information and cultural industries
- Professional, scientific and technical services
- Administrative and support, waste management and remediation services
- Educational services
- Health care and social assistance
- Arts, entertainment and recreation
grant_single|grantors
- Business Development Bank of Canada (BDC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get financing and advice from growth equity partners to help grow your business in Canada and internationally. This support will be provided through partnerships, funding and access to potential growth capital.
grant_single_labels|terms_and_conditions
This grant provides flexible financing solutions designed for mid-market growth businesses aiming to expand their operations and scale their impact. The financing structure is designed to empower businesses while maintaining management control.
- Minority equity investments ranging from $3 million to $35 million to support various scales of capital needs.
- Options for BDC Capital to participate, lead, or act as the sole partner in equity transactions.
- Non-controlling interest approach allowing businesses to retain their management dynamics.
grant_single_labels|projects
This grant supports mid-market growth businesses in Canada looking to expand their market reach and establish leadership within their industry. The fund is designed to provide minority equity investments for businesses seeking to accelerate their growth strategy.
- Minority equity investments for established companies to foster industry leadership.
- Capital flexibility to accommodate various scales of funding needs within the growth business sector.
- Strategic partnerships that allow businesses to maintain control while receiving expert investment guidance.
grant_single|admissibleProjectsExample
$ 70,000
Upgrade technology infrastructure to enhance cybersecurity for a Halifax-based cooperative
$ 50,000
Expand marketing efforts to increase sales of eco-friendly products
$ 80,000
Acquire equipment to start a local organic farming business
$ 100,000
Develop a new software platform to improve logistics and supply chain management
$ 90,000
Launch a new marketing campaign to enter international markets from Calgary
$ 120,000
Purchase new manufacturing equipment to increase production capacity
grant_single_labels|admissibility
Eligibility for this grant is determined by specific requirements related to the company's profile and financial performance.
- The company must be an established mid-market growth business with demonstrated markets, proven technology, and a viable business model.
- The management team must be experienced, knowledgeable, and financially committed.
- The company must exhibit solid financial results, with positive EBITDA and satisfactory pro-forma expectations.
grant_eligibility_criteria|who_can_apply
Mid-market growth businesses that are based in Canada and are seeking a long-term partnership to accelerate their growth. Eligible companies should have established markets, proven technology and business models, and experienced management teams with solid financial results.
grant_eligibility_criteria|eligible_expenses
There are eligible expenses for this grant. The grant covers expenses related to:
- Technology and innovation investments
- Marketing and sales expansion
- Acquisition of equipment
grant_eligibility_criteria|zone
This funding opportunity is open to businesses across Canada, as the fund is designed to empower Canadian entrepreneurs. Eligibility is based on business criteria rather than geographical location within Canada.
- All provinces and territories in Canada.
grant_single_labels|criteria
As an example of evaluation and selection criteria for this grant:
- Demonstrated markets, proven technology, and business model
- Experienced, knowledgeable, and committed management teams
- Solid financial results and pro-forma expectations with positive EBITDA
grant_single_labels|register
Here are the steps to submit an application for this grant:
- Step 1: Understand Eligibility Criteria
- Review the detailed eligibility requirements to ensure your company meets the criteria such as market demonstration, proven technology, experienced management team, and financial performance.
- Step 2: Prepare Your Application
- Gather necessary financial documents including evidence of positive EBITDA and pro-forma projections.
- Draft a comprehensive overview of your business, highlighting your growth strategy and industry leadership potential.
- Prepare information about your management team and their commitment.
- Step 3: Contact Growth Equity Partners
- Reach out to Growth Equity Partners to discuss potential partnerships.
- Organize a meeting with their investment professionals to explore how their offerings align with your growth objectives.
- Step 4: Finalize and Submit Application
- Review all components of your application for completeness and accuracy.
- Submit the application through the: "Contact us" feature on their platform.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The investment offers non-controlling interest, ensuring applicants maintain control of their company.
- Partners gain access to expert guidance at both Board of Directors and operational levels.
- Opportunities exist for participating in future rounds of growth capital.
- Investment ranges from $3M to $35M, offering flexible participation in equity transactions.
Apply to this program
The Growth Equity Opportunity for Canadian Entrepreneurs
The Growth Equity Partners Fund II, managed by BDC, is a key initiative designed to support mid-market Canadian businesses aiming to strengthen their market positions and expand globally. This fund, totaling $250 million, primarily offers minority equity investments ranging from $3 million to $35 million, allowing entrepreneurs to accelerate their growth strategies while maintaining control of their businesses.
Detailed Insights Into Growth Equity Partners Fund II
The Business Development Bank of Canada (BDC) has launched the Growth Equity Partners Fund II, targeting dynamic mid-market companies poised for expansion. This fund is particularly appealing to Canadian entrepreneurs who require substantial capital to fuel growth without relinquishing significant ownership stakes. BDC’s approach involves providing minority equity investments, ensuring entrepreneurs retain control while benefiting from the bank’s expertise and support.
The fund is structured to attract established businesses with proven technologies, validated business models, and experienced management teams. These companies often showcase robust financial achievements, evidenced by positive EBITDA, which positions them as capable of effectively utilizing equity capital to enhance their competitive edge and achieve sustainable growth. BDC’s role extends beyond merely providing capital; it offers strategic counsel, leveraging in-depth knowledge of local markets and industry trends to guide portfolio companies toward industry leadership status.
BDC's involvement ensures that these companies have the financial flexibility and guidance needed to explore new opportunities, scale operations, and potentially enter global markets. The Growth Equity Partners team positions itself as a reliable partner, capable of participating as a sole investor or co-investor, depending on the varying capital demands of each business. This provides a tailored investment approach, adjusting to the needs and growth pace of each company.
Firms under this funding banner can also benefit from the prospect of future rounds of growth capital, further securing their ability to adapt and thrive in rapidly changing markets. Additionally, they gain access to a wealth of networks through BDC’s connections, enabling new partnerships and strategic alliances that may open doors to unexplored markets and opportunities.
Applicants to the Fund can expect not only financial investment but also operational support and insights at the Board of Directors level, fostering environments where innovation and strategic planning are encouraged and prioritized. The partnership ethos emphasizes patient investment, focusing on long-term growth rather than immediate returns, which aligns well with the ambitious growth trajectories of visionary entrepreneurs.
In essence, the Growth Equity Partners Fund II by BDC reaffirms the bank’s commitment to nurturing Canadian entrepreneurship, offering substantial resources to propel companies toward becoming global industry leaders. This fund is a pivotal resource for mid-market businesses that are not only thriving domestically but also aspire to make their mark on the international stage.
