One of Canada’s biggest climate-tech backers pulls back • TechCrunch
A prolific investor in climate technology companies in Canada is back with a second “low carbon technologies” fund – only this time the company plans to pump less money into the scene, over a longer period of time.
The Business Development Bank of Canada (BDC) issued a new $400 million climate technology fund on Wednesday, which it called a “revolving commitment” to help build “global Canadian cleantech” companies.
BDC is state owned and was created to drive economic development in Canada. Its recent investment deals include joining Samsung on a tour of VueReal, which results in small, low-power offerings. And earlier this year, BDC teamed up with Toyota for financing Electron zincwhich makes zinc air batteries that can help utilities store renewable energy when the sun isn’t shining.
BDC launched its first climate fund in 2018, investing $600 million domestically over four years. The investment firm plans to make its second, smaller fund last five years, until Climate change acceleration.
When asked about the pullout, fund managing partner Susan Rohak told TechCrunch that the company “is customizing the offering to a more robust market with several partners we can work with.”
According to Rohack, BDC’s first fund was as large as it was because it was set up to “address a lack of venture capital” for climate and clean tech startups in Canada. Since then, “For every $1 [BDC] With our commitment, $6 in additional private funding was raised by our portfolio companies, simultaneous or post-investment,” Rohack said. In other words, the company argues that its first massive fund has created “more private sector appetite,” which will apparently compensate for BDC Cleantech practiceChapter Two Downsizing.
So far, BDC says it has funded 50 climate and clean tech companies via the fund, putting them in the same camp as other investors busy in the scene, including Active Impact Investments And the sustainable development technology canada (It is also supported by the Canadian government.)