BDC Capital Launches $150 Million Life Sciences Fund to Bridge Critical Seed Funding Gaps

BDC Capital launches a $150 million life sciences fund to support seed and Series A startups in therapeutics and MedTech. Learn how this fills a vital funding gap.

By: AXL Media

Published: Apr 10, 2026, 5:23 AM EDT

Source: Information for this report was sourced from BetaKit

A Strategic Pivot Back to Biological Innovation

The Business Development Bank of Canada, through its venture arm BDC Capital, has officially committed $150 million CAD to a new life sciences fund, marking a formal return to direct sector participation. This move follows a period of strategic absence after the bank spun off its previous health technology assets into an independent entity in 2019. According to Joseph Regan, the senior managing partner of venture capital at BDC Capital, this fresh capital is drawn directly from the institution’s balance sheet to address a specific void in the domestic financing landscape for medical advancement.

Navigating a Dehydrated Venture Capital Landscape

The timing of this launch coincides with a significant downturn in Canadian life sciences financing, which reached its lowest point since 2018. Data from the Canadian Venture Capital & Private Equity Association indicates that 2025 saw only $837 million invested in the sector, representing a staggering 47 percent year over year decline in total dollars. This scarcity of capital has made it increasingly difficult for capital intensive startups to navigate the complex regulatory and hardware costs associated with medical innovation, creating a demand for what the bank describes as patient capital.

Directing Capital Toward High Impact Verticals

The fund is specifically designed to support companies at the seed and Series A stages, focusing on therapeutics and medical technologies. Parimal Nathwani, the newly appointed managing partner who previously led Toronto Innovation Acceleration Partners, stated that the fund intends to back approximately 10 to 15 companies over its duration. Individual investments are expected to range from $1 million to $3 million for seed stage ventures and up to $8 million for Series A rounds, with additional provisions for follow on funding as these startups scale.