By Gerelyn Terzo, Global AgInvesting Media
In a boost for Canada’s agtech and food-tech sectors, the investment arm of the Business Development Bank of Canada (BDC), BDC Capital, has launched the $200 million Industrial Innovation Venture Fund II. The fund is aimed at fueling early-stage innovations that bolster productivity and resilience across key industries, including agriculture and food. As part of its strategy to push innovation, the fund will back high-growth entrepreneurs developing transformative technologies, such as robotics, automation, applied AI and industrial software, to transform how Canadians grow, process and deliver food while addressing productivity gaps in these areas.
This latest fund builds on the foundation laid by BDC Capital’s original C$250 million Industrial Innovation Venture Fund, introduced in 2019 to address longstanding investment gaps in Canada’s core industries, including agriculture and food. At the time, executives emphasized the need to support tech entrepreneurs disrupting traditional sectors like agtech and resource extraction, where venture capital had been slow to engage at scale.
Canada plays a critical role in global food production, ranking eighth globally in agriculture and food exports. Yet, it captures less than 4 percent of the global market share as of 2024, while the U.S. leads with over 9 percent. While Canada’s ag sector is a major contributor to the economy, it faces challenges, such as widening productivity gaps due to declining R&D spending, from over 2 percent of industry revenue in 1986 to around 1 percent by 2022. Other issues involve lagging agtech investments, with a mere fraction of global venture capital deals compared to 45.3 percent for the U.S.
Of the latest fund launch, BDC Capital Executive Vice President Geneviève Bouthillier stated, “Canada’s productivity gap is especially acute in sectors like manufacturing, mining and agriculture. With Fund II, we’re doubling down our commitment to entrepreneurs building practical, scalable technologies that are highly needed across these industries. The growing demand for critical minerals makes this investment more important than ever.”
Bouthillier further commented, “Fund II will target companies that are developing transformative solutions in areas such as robotics, automation, applied AI and industrial software. We believe these technologies are key to helping industrial enterprises improve efficiency, reduce waste and remain competitive in a rapidly evolving global market.”
In addition to agriculture and food, the new fund mandate also covers manufacturing, extractive industries and critical minerals.
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