News Summary

The Business Development Bank of Canada (BDC) has launched a $150 million CAD Life Sciences Venture Fund aimed at supporting early-stage Canadian companies in the life sciences sector. Managed by Parimal Nathwani, who previously led the Toronto Innovation Acceleration Partners (TIAP), the fund will focus on therapeutics and medical technologies. It will invest in seed and Series A-stage companies, with the goal of backing 10 to 15 companies over its lifecycle. This initiative marks a return to direct investment in the life sciences sector for BDC, which had previously retreated from the field. The fund seeks to fill a critical funding gap in Canada, where the life sciences sector has faced challenges in securing adequate seed-stage funding compared to the United States. BDC’s senior managing partner Joe Regan noted that despite the sector’s strong returns, venture capital flow has declined. The fund is expected to provide much-needed capital to help Canadian life sciences startups scale and compete globally.