Canada’s largest venture capital investor, Business Development Bank of Canada (BDC), has officially launched a new CAD $150 million fund focused on life sciences, marking a renewed push into the sector after several years of reduced activity.
The initiative will be managed through BDC Capital and targets early-stage companies developing therapeutics and medical technologies—two areas seen as underfunded despite their strategic importance.
Focus On Seed And Series A Investments
The fund will primarily invest in seed and Series A rounds, supporting companies across the broader life sciences landscape, including biotechnology, vaccines, and medical devices.
Parimal Nathwani, who previously led Toronto Innovation Acceleration Partners (TIAP), joins as Managing Partner and will oversee the fund’s investment strategy.
The plan is to back between 10 and 15 companies, with initial investments ranging from:
- $1M–$3M at seed stage
- $5M–$8M at Series A
- Additional follow-on capital for high-performing portfolio companies
Nathwani, who brings nearly two decades of experience in the sector, highlighted a persistent funding gap for companies moving beyond pre-seed stages into scaling phases.
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Addressing A Critical Funding Gap
Life sciences startups typically require more capital than software companies due to longer development cycles, regulatory hurdles, and hardware-intensive innovation. Despite this, investment in the sector has slowed significantly.
According to the Canadian Venture Capital & Private Equity Association, total investment in Canadian life sciences dropped to $837 million in 2025—the lowest level since 2018—representing a 47% year-over-year decline.
BDC aims to provide what it describes as “patient capital,” helping startups navigate longer timelines while complementing private investors who may be hesitant to fund early-stage science-driven ventures.
Strategic Return To Life Sciences
The new fund also signals BDC’s return to a sector it previously stepped back from. The bank had earlier spun out its dedicated life sciences investment arm into Amplitude Ventures in 2019.
The leadership has since acknowledged that the retreat came too early, especially as global competition—particularly from the United States—continues to accelerate.
A report by the Centre for Digital Entrepreneurship and Economic Performance highlighted that Canada lacks sufficient specialised capital providers in life sciences, limiting the country’s ability to scale breakthrough innovations.
Building Long-Term Investment Capacity
The CAD $150 million fund is financed directly from BDC’s balance sheet, according to Joseph Regan, who oversees the organisation’s direct investment platforms.
Looking ahead, BDC is already considering launching a follow-up fund within four to five years, similar to its approach in other sectors such as industrial innovation and defence technology.
About BDC Capital
BDC Capital is the investment division of the Business Development Bank of Canada, supporting high-growth companies through venture capital and direct investments. Its funds span multiple sectors, including deep tech, defence, and now life sciences, with a focus on scaling Canadian innovation globally.
