The Industrial Innovation Venture Fund II (I2VF II) is a $200 million fund launched by BDC Capital, the investment arm of the Business Development Bank of Canada. The fund is designed to support Canadian entrepreneurs building transformative technologies that boost the resilience, sustainability, and global competitiveness of the country’s industrial sectors. It follows the launch of Fund I in 2019, reinforcing BDC’s commitment to long-term support of industrial innovation in Canada.
I2VF II invests in early-stage, high-growth Canadian companies innovating in key industrial domains. The fund focuses on advanced manufacturing, ag-tech, food-tech, and extractive industries, with an expanded mandate in critical minerals, a sector of increasing strategic importance to Canada’s economic sovereignty and clean energy transition.
The fund seeks companies that are science and engineering-led, with strong potential to drive productivity and reshape supply chains.
Announced in August 2025, Industrial Innovation Venture Fund II was launched with a $200 million commitment from BDC Capital. This follows the momentum of Fund I, which backed over 20 early-stage companies since its launch in 2019. The new fund expands its investment thesis to include critical minerals and associated industrial technologies, aligning with national policy priorities around sustainability, resource independence, and industrial transformation.
While the fund is internally funded and managed by BDC, its structure allows for follow-on investments and long-term support through the scale-up journey. The fund continues to act as a catalyst for public-private innovation partnerships, often co-investing with corporate VCs and other institutional investors.
Leadership
The Industrial Innovation Venture Fund II is managed by a dedicated investment team within BDC Capital, with expertise in engineering, advanced manufacturing, and industrial tech commercialization. The broader BDC platform brings access to non-dilutive support, operational scale-up resources, and deep regional knowledge across Canada.
Investment Strategy
I2VF II takes a thesis-driven, early-stage approach, targeting companies with strong technical IP and scalable business models. The fund often enters at the Seed or Series A stage and provides ongoing capital and strategic support. BDC seeks ventures that can materially improve the efficiency, sustainability, and technological sophistication of Canada's industrial base.
A key component of the strategy includes addressing undercapitalized segments such as critical minerals and extractive technologies with both environmental and economic value.
Notable Investments
Under Fund I, BDC invested in over 20 companies, including:
Fund II has not yet disclosed its initial portfolio companies.
Notable Exits
No exits have been publicly announced from I2VF II. Fund I investments remain active and maturing, with several companies advancing into growth-stage phases with international relevance.
