News Summary

The Business Development Bank of Canada (BDC) is set to relax its restrictions on venture capital funds investing in defence-related startups. BDC’s executive vice-president, Geneviève Bouthillier, communicated to investors that the Crown corporation will allow investments in companies developing military-related products, provided they align with Canada’s security objectives and human rights commitments. This decision is part of a broader effort to bolster Canada’s defence industry amid increased governmental defence spending. Prime Minister Mark Carney’s recent budget has allocated $82 billion CAD over five years to strengthen the Canadian Armed Forces, including a $1-billion commitment to BDC for supporting small and medium-sized enterprises in defence tech. BDC, Canada’s largest VC, plans to launch a successor to its Deep Tech Venture Fund with a focus on defence tech, maintaining certain restrictions on non-allied arms sales.