BDC Venture Capital, the investment arm of the Business Development Bank of Canada, has allocated $135 million in new capital to direct investments in innovative healthcare companies. That brings BDC’s total direct commitment to the sector to $270 million. BDC Venture Capital Healthcare Fund will continue to spearhead this activity, investing in Canadian companies in such fields as innovative therapeutics and medical technology, diagnostics, health IT, mobile technologies and services, as well as robotics and automation. Life sciences companies backed by the fund’s team include Cytochroma, ViroChem, OncoGeneX, Gemin X and Tekmira.
BDC Venture Capital allocates $135 million more to healthcare innovation, broadens investment strategy
Toronto, September 17, 2013—As part of its mandate to support Canadian entrepreneurs, BDC Venture Capital announced today it has allocated $135 million in new capital to direct venture investments in innovative healthcare companies. That brings its total direct commitment to the sector to $270 million. Recognizing a massive and growing market opportunity, the BDC Venture Capital Healthcare Fund will broaden its investment strategy and invest in technology, products and services that aim to dramatically improve global healthcare productivity, efficiency and patient outcomes.
“Great investors typically look for industries that are undergoing massive disruption, and this is certainly true of the healthcare sector. We have never seen a better time to invest in the sector,” said Dion Madsen, Senior Managing Partner of the BDC Venture Capital Healthcare Fund. “All economies are struggling to maintain affordable and accessible healthcare systems. They are seeking new technologies to improve their health systems and improve healthcare delivery, while managing rising costs. With the widespread availability of wireless and mobile technologies, innovative molecular diagnostics and imaging technology, high-throughput genomic sequencing, and innovations in healthcare IT, the opportunity exists to radically transform healthcare delivery across the planet.”
The new funds will be used to invest in Canadian-based companies in fields such as innovative therapeutics and medical technology, diagnostics, health IT, mobile technologies and services, as well as robotics and automation. The fund will partner with Canadian and global investors, along with new players entering the healthcare industry—such as retailers,mobile computing and software firms, and insurers—to accelerate growth and market penetration for portfolio companies.
“This investment is just one example of the many ways BDC Venture Capital is making tangible, positive impacts on the Canadian venture capital ecosystem,” said Jérôme Nycz, Executive Vice President, BDC Venture Capital and Subordinate Financing. “The new money will be used to provide more Canadian technology companies with access to the capital required to develop and commercialize innovative healthcare technologies that tackle the unprecedented challenges—and opportunities—in delivering care efficiently and effectively.”
The BDC Venture Capital Healthcare Fund is managed by a team that consistently delivers strong results and has a successful track record of investing and exiting healthcare investments across North America. It comprises Dion Madsen, Senior Managing Partner in Vancouver; Gary Bantle, Partner in Calgary; Ela Borenstein, Managing Partner and Jean-François Pariseau, Partner, in Montreal. Amine Benmoussa, Associate Director in Montreal, supports the team. The team’s notable recent Canadian investment successes include Cytochroma, ViroChem, OncoGeneX, Gemin X and Tekmira.
About BDC Venture Capital
With more than $1 billion under management and more than 25 years of industry experience, BDC Venture Capital is an investor of choice focusing on IT, health and energy/cleantech companies, as well as venture funds, with high growth potential. From seed through expansion to exit, our mandate is to help build outstanding Canadian companies, while working to create a sound financial ecosystem for Canadian technology ventures. Find out more at www.bdc.ca/vc or on Twitter @BDC_VC.
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