The Business Development Bank of Canada (BDC) has shuttered its intellectual property financing program and slashed staff in its deep-tech fund amid a worsening capital crunch. The bank, which reported $220 million in venture losses in 2024, is struggling to recoup investments as early-stage firms delay returns.
BDC’s deep-tech fund, once Canada’s largest, will no longer seek new deals. Remaining capital will support its 12 current portfolio firms. Meanwhile, BDC is redirecting $1 billion toward lower-risk, later-stage investments. The restructuring reflects broader early-stage funding challenges, as investors shift focus away from high-risk innovation.
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