Fred Lum/The Globe and Mail
The Business Development Bank of Canada is pledging $160 million for companies that are rich in intellectual property, but often struggle to access capital.
Jerome Nycz, the executive vice-president at Montreal-based BDC Capital, says in a statement that the money will help companies enable commercialization, increase competitiveness and expand globally.
He says the goal of the entrepreneur-focused bank is to lead by example and inspire like-minded stakeholders to support more companies and make Canada a leader in IP.
BDC’s new coffers will provide financing in the form of a sub-debt, convertible debt and equity to accelerate commercialization.
The fund will target scaling companies in knowledge-based industries with rich IP portfolios including patents, design, and trade secrets and at least $1 million in annual revenue.
According to a 2017 study from U.S. intellectual property merchant bank Ocean Tomo, 83 per cent of the value of S&P 500 companies came from tangible assets in 1975, but in 2015, it shifted to 84 per cent of value coming from intangible assets like IP.
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