BDC Unveils $200M Fund II to Ignite Canada’s Industrial Innovation

BREAKING: The Business Development Bank of Canada (BDC) has just launched a groundbreaking initiative, the Industrial Innovation Venture Fund II (I2VF II), with a massive commitment of $200 million aimed at propelling Canada’s industrial landscape into the future. This urgent announcement was made on August 20, 2025, as the global economy witnesses rapid transformation through automation and digitalization.

This newly established fund is designed specifically to support Canadian entrepreneurs who are at the forefront of developing next-generation technologies. These innovations are crucial for enhancing productivity and resilience in pivotal industrial sectors such as advanced manufacturing, ag-tech, food-tech, and the extractive industries. Notably, there is now a heightened focus on critical minerals, an area deemed essential for Canada’s economic sovereignty and aspirations.

According to Geneviève Bouthillier, Executive Vice President of BDC Capital, “Canada’s productivity gap is especially acute in sectors like manufacturing, mining, and agriculture.” With the launch of Fund II, BDC is doubling down on its support for entrepreneurs creating practical, scalable technologies that are increasingly vital in today’s marketplace.

“Fund I successfully addressed a critical funding gap, backing over 20 early-stage companies and showcasing the immense potential of industrial innovation to elevate productivity and global competitiveness,” Bouthillier added. The initial fund demonstrated significant impacts, and now Fund II aims to target companies working on transformative solutions in robotics, automation, applied AI, and industrial software.

BDC’s commitment to innovation is not just about financial backing; it is about fostering a new wave of technologies that can help industrial enterprises enhance efficiency, minimize waste, and stay competitive in a rapidly evolving global landscape.

As Canada’s economy continues to evolve, the implications of this $200 million investment are profound. This fund is expected to significantly impact the nation’s GDP, contributing an estimated $25 billion over the next five years.

In addition to driving economic growth, BDC is recognized as a leader in fostering diversity and inclusion in the workplace, having been named one of Canada’s Top 100 Employers and receiving the B Corp certification.

With the launch of I2VF II, Canadian entrepreneurs are poised to harness the power of innovation to tackle some of the biggest challenges facing the industrial sector today. The industry is urged to take note of this significant funding opportunity, as it could redefine Canada’s position in the global market.

Stay tuned for more updates as BDC continues to evolve and support the future of industrial innovation in Canada.