The Business Development Bank of Canada (BDC) is launching a $150 million Life Sciences Venture Fund to support “the next generation of Canadian companies in the sector.”

“With this new fund, BDC is aiming to complement the existing market by providing patient capital to trailblazing early‑stage seed and Series A companies, so that they can move from the lab to the market,” BDC stated in the announcement Thursday. “It will focus on the two sectors where Canada has the most opportunities: therapeutic products and medical technologies.”

It supports an established path for BDC in its investment strategies.

“The core of BDC’s mission is to generate positive impacts to Canada’s economy, and that starts with fuelling the creation and growth of small- and medium-sized enterprises (SMEs) in every corner of the country, leaving no economic potential behind,” said Isabelle Hudon, president and CEO of BDC in a release when the bank presented its 2025 annual report.

According to the report, BDC has supported some 107,345 entrepreneurs who tapped into a range of advisory services, financing and capital. BDC provided $11.5 billion in new loans and investments to SMEs.

Supporting Canada’s fast-growing life sciences industry

According to BDC, life sciences are a major engine of Canada’s economy, “contributing $18.3 billion annually, representing 0.8 per cent of GDP, and supporting more than 135,000 specialized jobs. By providing a new source of Canadian capital, BDC aims to help entrepreneurs bring new health solutions to market and retain scientific talent in Canada to strengthen our competitiveness.”

Although the life sciences sector continues to demonstrate the strongest 10‑year venture capital returns in Canada, “financing gaps persist, especially at the earliest stages of company development. In a sector tied to Canada’s economic sovereignty, national security and its ability to support essential health advances for Canadians, these vulnerabilities weaken our capacity to build and retain globally competitive companies here at home,” BDC continued.

The fund will focus on supporting businesses developing and scaling biotechnology‑based innovations such as laboratory‑developed proteins and antibodies, gene and cell therapies and medicines based on nucleic acids. Others will be firms developing medical devices, diagnostic tools, imaging technologies, surgical robotics and related clinical software used to diagnose, treat or monitor health conditions.

“Life sciences is one of our most innovative sectors, yet that success is at risk as early-stage companies continue to be left behind by investors. It's a risk we can no longer ignore – especially at a time when Canada needs more champions to build our own economic sovereignty right here at home,” said Geneviève Bouthillier, executive vice-president, BDC Capital in the release. "It's a sector where Canada can, and should, lead internationally, but too much reliance on foreign investment is holding us back. As Canada's development bank, we want to help change that.”

BDC also announced Parimal Nathwani as managing partner of the fund. BDC said Nathwani brings extensive experience as a ”life sciences leader… and brings more than 20 years of experience in building and scaling biotechnology and medical technology companies.”

“Canada has world‑class talent and a strong life sciences innovation base,” Nathwani said in the announcement. “But with a significant early‑stage funding gap, combined with long development cycles and demanding scientific validation, the needs are pressing.

"By supporting early‑stage companies in therapeutics and medical devices, we aim to turn Canadian research and intellectual property into globally competitive businesses that improve human health, create high‑quality jobs, generate economic impact and strengthen Canada’s innovation ecosystem.”