BDC Venture Capital Adds $135 Million to Healthcare Fund, Broadens Investment Strategy

In a recent article about why entrepreneurs shouldn’t ignore the massive transformation happening in healthcare technology,  senior managing partner of the BDC Healthcare Venture Fund Dion Madsen hinted to Techvibes that the fund—already the leader in Canada—would soon get an injection of more capital.

Today that injection was finalized: BDC Venture Capital announced it has allocated $135 million in new capital to direct venture investments in innovative healthcare companies, which brings its total direct commitment to the sector to $270 million.

Recognizing “a massive and growing market opportunity,” the BDC Venture Capital Healthcare Fund says it will broaden its investment strategy and invest in technology, products and services that aim to dramatically improve global healthcare productivity, efficiency and patient outcomes.

“Great investors typically look for industries that are undergoing massive disruption, and this is certainly true of the healthcare sector. We have never seen a better time to invest in the sector,” says  Madsen. “All economies are struggling to maintain affordable and accessible healthcare systems. With the widespread availability of wireless and mobile technologies, innovative molecular diagnostics and imaging technology, high-throughput genomic sequencing, and innovations in healthcare IT, the opportunity exists to radically transform healthcare delivery across the planet.”

According to Madsen, the new funds will be used to invest in Canadian-based companies in fields such as innovative therapeutics and medical technology, diagnostics, health IT, mobile technologies and services, as well as robotics and automation.

“This investment is just one example of the many ways BDC Venture Capital is making tangible, positive impacts on the Canadian venture capital ecosystem,” added Jérôme Nycz, Executive Vice President, BDC Venture Capital and Subordinate Financing. “The new money will be used to provide more Canadian technology companies with access to the capital required to develop and commercialize innovative healthcare technologies that tackle the unprecedented challenges—and opportunities—in delivering care efficiently and effectively.”