The Bank deploys another initiative to help entrepreneurs seize the once-in-a-lifetime business transition opportunity
The Business Development Bank of Canada (BDC) announced the launch of its $50M Thrive Entrepreneurship through Acquisition Fund (Thrive ETA Fund) aiming to support more than 60 Canadian women in acquiring and operating Canadian companies. Over 142,000 entrepreneurs plan to close, transfer or sell their business in the next 5 years, that’s 17.4% of SMEs, representing a unique opportunity to accelerate women’s business ownership.
To support the growing wave of business ownership transitions, BDC is expanding its efforts to foster a more diverse and balanced entrepreneurial landscape. Through its Growth and Transition Capital team, the Bank offers tailored financing solutions that help entrepreneurs acquire businesses without diluting ownership. BDC’s Community Banking team also recently launched an initiative with First Nations Bank of Canada to boost business acquisitions by Indigenous communities and development agencies nationwide.
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The Thrive ETA Fund will be managed through BDC’s Thrive Lab for Women. The Thrive ETA Fund is a $50M investment envelope and an accelerator to support women in finding, acquiring and operating businesses with:
- $10 million in indirect investments: allocated to Canadian private equity funds that support women-led business acquisitions, helping to strengthen the broader ecosystem
- $40 million in direct investments: dedicated to women ready to acquire a business, whether through a search fund, a management buyout, or a self-funded search
- An accelerator, which will include training, capital access, deal sourcing, mentorship and guidance and a peer community.
“The key to maximizing performance and impact is pairing outstanding women with high-quality, profitable mid-sized businesses while raising awareness of entrepreneurship through acquisition as a powerful path to ownership. That’s exactly what we aim to do with the Thrive ETA Fund”, said Sévrine Labelle, Managing Director of the Thrive Lab for Women at BDC. “BDC wants to be a trailblazer in building the ETA and search fund ecosystem, helping women seize the business acquisition opportunity and reshape the future of business ownership.”
The Thrive ETA Fund is expected to fill a critical gap in Canada’s ownership landscape, crowd in private capital from like-minded investors and act as a catalyst for market transformation. The current ownership and investment gap – only 19% of Canadian SMEs are owned by women and less than 4% of VC backed founders are women – is an opportunity for transformational change.
With its initiative with First Nations Bank of Canada, the Thrive ETA Fund and others to come, BDC wants to support more entrepreneurs as they take on business transition opportunities. By tackling the business transition challenge together, we can help our businesses remain Canadian-owned.
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