BDC Launches New Fund Dedicated to Deep Tech and Quantum Computing: Investing in Canada’s Innovation Future
Canada’s innovation landscape just received a powerful catalyst as the Business Development Bank of Canada (BDC) unveiled a $200 million CAD Deep Tech Venture Fund in May 2021. This patient capital vehicle targets early-stage deep technology and quantum computing startups to bridge Canada’s commercialization gap and foster domestic tech champions. In this article, we explain the fund’s purpose, the sectors it supports, how it addresses financing shortfalls, the leadership driving its strategy, real-world success stories, the outlook for quantum technologies, and practical steps for entrepreneurs to secure funding from BDC.
What Is the BDC Deep Tech Venture Fund and Its Purpose?
The BDC Deep Tech Venture Fund is a federal Crown corporation’s dedicated investment vehicle focused on transformative science-based innovation. It provides equity investments alongside advisory services to Canadian founders tackling complex R&D.
What defines the BDC Deep Tech Venture Fund?
The Deep Tech Venture Fund is a $200 million CAD commitment by BDC Capital launched in May 2021. It invests primarily at Seed and Series A stages in Canadian companies developing deep technologies with lengthy research cycles, including quantum computing, AI and photonics. The fund’s objective is to accelerate commercialization and scale home-grown R&D into global markets.
How does the fund support early-stage Canadian deep tech startups?
BDC Capital deploys patient capital through equity investments of up to $20 million per deal, paired with hands-on advisory on commercialization strategy, market entry and ecosystem connections. This blended finance-and-services model guides startups through product validation, customer discovery and regulatory pathways to strengthen their innovation foundation and attract co-investors.
Why is patient capital critical for deep tech innovation?
Deep tech innovations demand extended R&D timelines, rigorous testing and specialized talent before revenue generation. Patient capital absorbs the high upfront cost and risk that conventional venture capital often avoids, enabling startups to refine prototypes, secure intellectual property and navigate complex supply chains without premature pressure to exit.
Patient Capital for Deep Tech
Deep tech ventures often require substantial upfront investment and extended research and development timelines before generating revenue. Patient capital, which is less concerned with short-term returns, allows startups to refine their technologies, secure intellectual property, and navigate complex supply chains without the pressure of immediate profitability.
This research supports the article’s emphasis on the importance of patient capital in fostering innovation within the deep tech sector.
Which Deep Tech Sectors and Technologies Does the Fund Target?
What are the key deep tech verticals supported by BDC?
BDC prioritizes five core verticals:
- Quantum computing and quantum information sciences
- Foundational artificial intelligence and machine learning
- Photonics and advanced optics
- Robotics and autonomous systems
- Cybersecurity and cryptographic solutions
These verticals leverage Canada’s university research clusters and attract partnerships with national labs, preparing the ground for scalable commercialization.
How does quantum computing fit into Canada’s innovation ecosystem?
Quantum computing harnesses quantum mechanics to solve problems intractable for classical processors, such as complex optimization, materials simulation and secure communications. Canada’s National Quantum Strategy and leading research institutions in Toronto, Montreal and Waterloo form a robust ecosystem that BDC’s fund enhances by channeling growth capital into startups developing fault-tolerant hardware, quantum algorithms and enabling software stacks.
Canada’s National Quantum Strategy
Canada’s National Quantum Strategy and the presence of leading research institutions in cities like Toronto, Montreal, and Waterloo create a strong ecosystem. This ecosystem is further enhanced by initiatives like the BDC’s fund, which directs growth capital towards startups developing quantum technologies, including hardware, algorithms, and software.
This citation highlights the role of government policy and research institutions in supporting the growth of quantum computing in Canada, as discussed in the article.
What advanced technologies are prioritized for commercialization?
Entrepreneurs working on these advanced technologies are prime candidates for BDC’s funding:
These domains illustrate where BDC’s patient equity and strategic guidance can drive Canadian innovations toward market adoption and export readiness.
How Does BDC’s Deep Tech Fund Address the Canadian Funding Gap?
What challenges exist in Canadian deep tech financing?
- A dearth of late-stage venture capital willing to underwrite extended R&D risk
- A commercialization gap where labs spin-out technology without follow-on funding
- Global competition for talent and capital draws startups to larger markets
These factors have left Canadian deep tech companies undercapitalized at critical growth inflection points.
How does BDC’s patient capital model overcome these challenges?
- Long-term equity stakes align BDC’s interests with startup success rather than quick exits
- Advisory services help navigate regulatory, IP and market-entry hurdles
- Ecosystem-building initiatives connect entrepreneurs with corporate partners, research institutes and co-investors
This combination of capital and expertise addresses financing gaps and de-risks deep tech ventures.
What is BDC’s investment thesis and approach for deep tech startups?
BDC Capital’s thesis emphasizes early-stage startups whose core innovation requires significant R&D and who demonstrate clear pathways to high-value markets. The approach integrates financial support with mentorship on product-market fit, team development and ecosystem partnerships to accelerate the journey from lab prototype to industrial adoption.
Who Leads the BDC Deep Tech Venture Fund and What Is Their Role?
Who is Thomas Park and what is his role as Lead Partner?
Thomas Park serves as Lead Partner of the Deep Tech Venture Fund, bringing over 15 years of venture capital and technology commercialization experience. He guides investment decisions, mentors founders on scale-up strategies and forges collaboration channels across public and private stakeholders.
What contributions have other key executives made to the fund?
- Jérôme Nycz, Executive Vice President at BDC Capital, provided early strategic oversight to establish a cohesive deep tech investment mandate.
- Charles Lespérance, former Partner, contributed expertise in photonics and advanced materials to shape sector focus and due diligence protocols.
Collectively, the leadership team curated a fund framework aligned with Canada’s innovation priorities.
How does BDC Capital’s leadership influence fund strategy?
Senior executives at BDC Capital embed strategic vision by identifying emerging technology trends, liaising with government innovation agencies and fostering cross-industry partnerships. Their guidance ensures the fund adapts to evolving R&D landscapes and scales impact across Canada’s deep tech ecosystem.
What Are the Success Stories and Impact of BDC’s Deep Tech Investments?
Which portfolio companies exemplify the fund’s impact?
- Nord Quantique – Developing quantum sensing systems for industrial monitoring
- Xanadu Quantum Technologies – Building photonic quantum computers and algorithm platforms
- MediRay Analytics – Leveraging AI and photonics in medical imaging
These startups showcase BDC’s role in bringing deep technologies from concept to customer pilots.
How has BDC funding accelerated commercialization and growth?
BDC’s equity and advisory support enabled Nord Quantique to secure pilot contracts with energy utilities, while Xanadu expanded its photonic hardware labs and attracted global research partnerships. Startups credited patient capital with reducing time to revenue and enhancing investor confidence for follow-on rounds.
What lessons do these case studies offer for deep tech startups?
- Align R&D milestones with clear market validation steps
- Leverage ecosystem connections for industry-specific pilot programs
- Balance technical development with commercialization and regulatory planning
These insights guide emerging ventures toward sustainable growth and competitive advantage.
What Is the Future Outlook for Deep Tech and Quantum Computing in Canada?
What emerging deep tech trends are shaping Canada’s innovation landscape?
- Integration of AI with quantum algorithms to solve complex logistics
- Scalable manufacturing of photonic and electronic quantum components
- Advanced materials for next-generation batteries and semiconductors
- Cyber-resilient encryption leveraging quantum-safe cryptography
These trends promise significant market expansion and high-value job creation.
How is BDC planning to sustain and expand its deep tech investments?
BDC Capital is exploring a follow-on deep tech fund to increase aggregate assets under management, deepen co-investment partnerships and launch sector-specific accelerators. Continued engagement with research institutes and corporate innovation arms will reinforce Canada’s R&D commercialization pipeline.
What government policies and ecosystem supports enhance deep tech growth?
- National Quantum Strategy (Budget 2021: $360 million) fuels research infrastructure
- NRC-led Regional Innovation Ecosystems boost local commercialization
- SR&ED tax credits and IRAP grants reduce early development costs
- Provincial initiatives in Quebec, Ontario and Alberta support deep tech clusters
These policy levers amplify BDC’s funding to create a robust innovation ecosystem.
How Can Canadian Entrepreneurs Access Funding from BDC’s Deep Tech Venture Fund?
What are the eligibility criteria for startups seeking investment?
- Incorporated Canadian company with majority Canadian ownership
- Proprietary deep technology requiring significant R&D
- Seed or Series A stage with defined technical milestones
- Management team with relevant domain expertise and market vision
Meeting these criteria opens the door to patient capital and advisory partnerships.
How does the application and advisory process work?
Founders submit a detailed technology and business plan to BDC Capital, followed by due diligence on technical feasibility, market potential and team capability. Successful candidates undergo term-sheet negotiation and enter an advisory engagement phase that outlines go-to-market, regulatory and scaling strategies.
What additional support services does BDC provide alongside funding?
Beyond equity, BDC delivers commercialization coaching, market research, ecosystem introductions and board-level counsel. Dedicated deep tech advisors assist with export strategy, intellectual property management and corporate finance to maximize startup success.
By meeting with BDC’s deep tech advisors and preparing a comprehensive technology dossier, Canadian innovators can access the capital and expertise vital for transforming scientific breakthroughs into global market leaders.