Business Development Bank of Canada (BDC) Intellectual Property-Backed Financing

Description:

The Intellectual Property-Backed Financing solution is a $160M fund that provides customized, patient capital in the form of debt, quasi-equity and equity to scaling Canadian companies in knowledge-based industries.

Comments on Funding:

Funding is in the form of debt, quasi-equity and equity and starts at $100,000. The lending terms are flexible and the convertible notes are changed to minority equity investments so that the applicant maintains control of his/her business.

Eligibility:

Applicants must:

  • be companies who have monetized their IP portfolios through product commercialization or licensing arrangements;
  • have emerging or established registered IP portfolios;
  • have commercialized offering with at least $1M in revenue over last 12 months;
  • have ambition and plan to be a global player;
  • have been in operation for at least 24 months;
  • be Canadian citizens or permanent residents;
  • have reached the age of majority in the province or territory in which they live.

Applications Steps:

Applicants must:

Other Things to Note:

Typically, firms involved in pharmaceuticals, health biotech, new materials, telecommunications, information technology, software, medical equipment and avionics are considered to be in the knowledge-based industries. They have long product development cycles and their comparative advantage usually comes from innovative and creative people who make up the development team.

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