BDC to give $160M to IP-rich companies struggling to access capital

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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 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.

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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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