BDC funds CAD $50 million for women-led SMB acquisitions

The Business Development Bank of Canada has launched the Thrive Entrepreneurship program through its Acquisition Fund to encourage and support women in acquiring and operating Canadian businesses.

The fund, valued at CAD $50 million, aims to support over 60 women across Canada in the business acquisition process. The fund is introduced as part of efforts to address the anticipated wave of business transitions, as it is estimated that more than 142,000 entrepreneurs, or 17.4 per cent of small and medium-sized enterprises (SMEs), plan to sell or close their business within the next five years.

The fund will be managed through BDC's Thrive Lab for Women and is structured as a combination of direct and indirect investments, along with a dedicated accelerator program. Of the total CAD $50 million, CAD $10 million is earmarked for indirect investments through Canadian private equity funds that support women-led acquisitions. The remaining CAD $40 million is allocated for direct investment in women acquiring businesses, including those pursuing ownership via a search fund, a management buyout, or a self-funded search.

Additionally, the accelerator attached to the Thrive ETA Fund offers training, capital access, deal sourcing, mentorship, guidance, and a peer community for participants. 

"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 fund's introduction responds to the currently low representation of women among business owners in Canada. Current data suggests only 19 per cent of Canadian SMEs are owned by women. Additionally, women founders received less than four per cent of all venture capital backing, according to BDC's release. By targeting this ownership and investment gap, BDC intends the fund to act as a catalyst for broader market transformation and to encourage additional private investment in women-led business acquisitions.

According to BDC, the estimated economic impact of its services may contribute an additional CAD $25 billion to Canada's GDP over the coming five years. The bank remains focused on evolving its support in line with entrepreneurial needs and broader economic trends in Canada.

The launch of the Thrive ETA Fund is accompanied by BDC's other recent initiatives in business transition, including a partnership between its Community Banking team and First Nations Bank of Canada. This initiative is designed to support business acquisitions by Indigenous communities and development agencies across the country. It forms part of BDC's broader effort to promote diversity and inclusion within Canada's entrepreneurial ecosystem.

With these programs, BDC seeks to provide practical assistance to entrepreneurs navigating ownership transitions and also to ensure businesses remain under Canadian ownership. BDC's Growth and Transition Capital team continues to provide additional tailored financing solutions, allowing entrepreneurs to acquire companies without diluting their ownership stake.