BDC Capital invests in Fiasco Gelato as part of broader deal

BDC Capital recently provided undisclosed quasi-equity financing to Fiasco Gelato Cafés Ltd, a Calgary-based artisan gelato and sorbetto maker and wholesaler.

BDC, which invested through its Growth & Transition Capital group, said the financing is part of a broader deal that includes equity investors and government grants. No details were released.

BDC’s investment, its second in Fiasco, was led by Director Matthew Hanson.

Founded in 2003 and led by Chief Idea Officer and CEO James Boettcher, Fiasco sells its products through more than 2,800 retailers across Canada.

The company will use the funds raised to expand distribution in Ontario, Québec and Atlantic Canada as well as develop and market new flavours.

PRESS RELEASE

Fiasco Gelato of Calgary Secures Investment From BDC Capital as Part of Larger Capital Raise

CALGARY, May 16, 2019—BDC Capital’s Growth and Transition Capital division recently provided quasi-equity financing to Fiasco Gelato of Calgary, Alberta. Founded in 2003, Fiasco is an artisan gelato and sorbetto manufacturer and wholesaler which prides itself on using quality ingredients and production processes. A Certified B Corp since 2016, Fiasco was named a “Best for the World” honouree in 2018. The company was also recognized last month as one of the “Best Workplaces in Canada” by Great Place to Work and one of “Canada’s Top Small & Medium Employers” by Mediacorp Canada. The financing from BDC Capital is part of a larger capital raise that includes equity investors and government grant funding.

The funds will primarily be used to expand Fiasco’s distribution through outlets of two major national retailers in Ontario, Quebec and Atlantic Canada, as well as to develop and market new flavours. This is the company’s second financing from BDC Capital, which assisted Fiasco in 2015 with building additional production capacity and inventory.

“We’re happy to expand our relationship with BDC Capital as we head into a big year for Fiasco,” says James Boettcher, Chief Idea Officer and CEO. “This capital will allow us to do our best work in 2019 and expand Fiasco’s reach in Ontario, Quebec and Atlantic Canada while ensuring we never forget our roots in Calgary and Western Canada.”

The transaction for BDC Capital was led by Matthew Hanson, Director, Growth & Transition Capital, Calgary. “Fiasco’s management is succeeding in rapidly scaling a quality product while maintaining strong enthusiasm for the brand and exemplary corporate values,” says Hanson. “James Boettcher and his team are very good at identifying opportunities, and we are confident there is a lot of room left for the company to grow.”

About Fiasco Gelato

Maker of Canada’s No. 1—selling gelato and sorbetto, Fiasco has quickly become the industry leader not only for their commitment to the craft but also for their approach to doing business differently. Fiasco’s unique flavour offerings, one of a kind packaging & passionate brand promise in building something that matters is the steady foundation for creating a company that pushes the limits on what it means to be an innovative culture and a steward for the environment and community. In just under four years of their first pint hitting grocers shelves, Fiasco is now available in over 2800 retailers across Canada.

The purpose driven team at Fiasco stands by their mission to enrich people’s lives. They just happen to do it by making gelato. For more visit www.fiascogelato.ca.

About BDC Capital

BDC Capital is the investment arm of BDC—Canada’s only bank devoted exclusively to entrepreneurs. With more than $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital, supporting Canadian entrepreneurs who wish to scale their businesses into global champions. Visit bdc.ca/capital.