DCHP-3

Business Development Bank of Canada

DCHP-2 (Nov 2012)
n. — Finance, Administration

a Crown corporation providing financing, venture capital and consulting services to small and medium-sized businesses.

Type: 1. Origin — In 1944, the government of Canada created the Industrial Development Bank (IDB), which was aimed mainly at supporting the manufacturing industry. Over the next twenty years, the IDB Act diversified its programs to serve almost every sector. In the mid-1970s, it was decided that a Crown corporation would succeed the IDB and in 1975 the Federal Business Development Bank (FBDB) was created to replace the IDB. The FBDB focused more on small and medium business than its predecessor. In 1995, the FBDB was renamed as the Business Development Bank of Canada by the Business Development Bank of Canada Act. This act also placed more focus on supporting the technology sector (see BDC reference).

Quotations

1995
The newly christened Business Development Bank of Canada now has "Patient Capital" for high-tech upstarts desperate for cash. The former Federal Business Development Bank began its makeover yesterday - from much-maligned lender of last resort into a hefty bank-roller to the knowledge-based sector - with the launch of a series of new initiatives, the Crown corporation said.
2004
A judge deals a stinging defeat to some of Jean Chretien's closest loyalists, ruling they wrongly forced out the president of the Business Development Bank of Canada because he dared stand up to Chretien's demands to lend money to a constituent.
2013
A finely tuned online strategy is now essential for small and medium-sized businesses, says a new survey from the Business Development Bank of Canada. The impact of the internet, along with the buy-local movement, rising health awareness, frugality and mass customization of goods are leading consumer trends that will have a permanent impact on Canadians' buying habits.
2016
BDC Capital's IT Venture Fund II, from which this investment is drawn, was created to address the mid-stage "capital crunch" faced by many growing software companies in Canada. The fund focuses on more mature startups in the mobile, Internet, enterprise, cloud solutions and financial tech sectors that have a product in market and are already generating revenue. Its goal is to help build a new generation of global Canadian IT market leaders. IT Venture Fund II was entirely allocated from proceeds of previous IT Venture Fund investments and other earnings from BDC Capital and its parent corporation, the Business Development Bank of Canada (BDC).

References