CPE News (7/16/2020) – BDC Capital has launched a $160 million new intellectual property (IP) development financing envelope to support IP rich companies in Canada.
A first of its kind in Canada, the program will provide customized, patient capital that recognizes the strength and value of a company’s IP strategy and portfolio—a core asset that must be recognized, protected and valued.
Investments will be in the form of sub-debt, convertible debt and equity. Target companies will be scaling companies in knowledge-based industries with rich IP portfolios including patents, design, and trade secrets and at least $1 million in annual revenue.
The program will be led by Lally Rementilla, Managing Partner, IP Investments and CEO of Quantius Inc. Rementilla successfully launched and led Quantius, a commercial lender and private debt manager specializing in funding innovative companies with intangible assets. Rementilla and her Quantius team will manage the program.
In November 2019, Rementilla and CIO Len Kofman completed a management buy-out and restructuring of the firm and its assets from majority shareholder TODAQ Financial Inc.
photo credit: BDC
BDC launches $160M financing envelope to support IP development in Canada
Initiative will help Canada recognize and protect intangible assets
July 16, 2020, Montreal: BDC Capital has created a new intellectual property (IP) development financing envelope to support IP rich companies in Canada. This $160M envelope is the first of its kind in Canada providing customized, patient capital that recognizes the strength and value of a company’s IP strategy and portfolio—a core asset that must be recognized, protected and valued.
“Companies offering intangible assets like IP often struggle to access capital,” said Jérôme Nycz, executive vice-president at BDC Capital. “Our goal is to lead by example and fill this gap by providing the capital IP-rich companies need to enable commercialization, increase competitiveness, and expand globally. Our hope is to inspire like-minded stakeholders to work alongside us to support even more companies and make Canada a leader in the IP space.”
Research shows the future growth of the Canadian economy will come from innovation and knowledge. According to a study authored by Ocean Tomo and published in 2017 titled the Intangible Asset Market Value Study, back in 1975, S&P 500 companies showed 83% of their corporate value came from tangible assets. In 2015, it shifted with 84% of their corporate value coming from intangible assets. We should expect to see the same in Canada.
To support more IP initiatives, BDC Capital has recently onboarded a new team under the leadership of Lally Rementilla, as Managing Partner. Prior to joining BDC, Rementilla successfully launched and led Quantius, an alternative commercial lender that specialized in funding innovative companies with intangible assets. Now, under BDC Capital, she and her colleagues from Quantius will deliver financing and facilitate access to strategic advice at scale.
“We are thrilled to launch this financing solution that will build and maintain a strong network of IP leaders within the Canadian IP ecosystem,” said Rementilla. “Together, we will help Canadian companies leverage and protect their IP and continue to position Canada as a leader in the innovation economy.”
BDC Capital’s new envelope will provide financing in the form of a sub-debt, convertible debt and equity to accelerate commercialization. These will be scaling companies in knowledge-based industries with rich IP portfolios including patents, design, and trade secrets and at least $1M in annual revenue.
About BDC Capital
BDC Capital is the investment arm of BDC—Canada’s only bank devoted exclusively to entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital, supporting Canadian entrepreneurs who wish to scale their businesses into global champions. Visit bdc.ca/capital.