Business Development Bank of Canada announced the launch of a $150 million Life Sciences Venture Fund aimed at supporting early-stage companies in therapeutics and medical technologies.
The new fund is designed to provide patient capital to seed and Series A companies, helping them transition from research and development to commercialization. BDC is targeting areas where Canada has strong potential, particularly therapeutic products and medical technologies, while addressing persistent funding gaps at the earliest stages of company development.
The initiative comes as Canada’s life sciences sector continues to play a significant role in the economy, contributing $18.3 billion annually and supporting more than 135,000 specialized jobs. Despite strong long-term venture capital returns, early-stage companies often struggle to secure sufficient funding, creating barriers to innovation and growth.
BDC aims to strengthen Canada’s competitiveness by retaining scientific talent and enabling entrepreneurs to build globally competitive companies domestically, reducing reliance on foreign investment and enhancing economic sovereignty.
As part of the launch, Parimal Nathwani has been appointed Managing Partner of the fund. Nathwani brings over 20 years of experience in building and scaling biotechnology and medical technology companies, with expertise spanning scientific development, commercialization, and operational strategy.
The fund will focus on translating Canadian research and intellectual property into scalable businesses that improve health outcomes, generate economic impact, and strengthen the country’s innovation ecosystem.
KEY QUOTES:
“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. 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. Today’s 150M announcement is a clear statement that Canada intends to lead from within in life sciences.”
Geneviève Bouthillier, Executive Vice President, BDC Capital
“Canada has world class talent and a strong life sciences innovation base. 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.”
Parimal Nathwani, Managing Partner, Life Sciences Venture Fund, BDC Capital
