B.C.-based technology startups that graduate from FounderFuel, a Montreal-based startup accelerator program, will be eligible for a $150,000 investment from the Business Development Bank of Canada (BDC)’s venture capital arm.
More than 40 young enterprises from all over the country will be eligible for a $150,000 BDC convertible note upon completion of FounderFuel’s 12-week, mentor-driven business bootcamp. The notes are short-term loans that are usually converted into shares later in the company’s life. They represent a $6 million commitment from BDC Venture Capital.
“Entrepreneurship and venture capital investments are on the rebound in Canada. But there will always be this six- to 12-month critical period for many new companies when the startup capital from the partners, their families and friends starts drying up and before financing from venture capitalists and angels can be secured,” said Senia Rapisarda, vice-president of strategic investments and initiatives for BDC Venture Capital.
“Our convertible notes program, which is one of the means we use to bolster the Canadian venture ecosystem, is bridging the financing gap that few institutional and private investors can assume.”
BDC Venture Capital confirmed that there are two Vancouver-based companies currently enrolled in the FounderFuel program, but didn’t reveal which ones.
The venture capital organization said that Vancouver-based Playerize, one of last year’s FounderFuel cohort, raised $1.1 million in financing as a result of connections made at the program’s public graduation ceremony, or “Demo Day.”
