BDC Capital launching $135 million VC fund for energy and cleantech startups

BDC Capital announced that it is launching a new $135 million fund that will invest in 15 to 20 energy and cleantech startups.

BDC’s Industrial, Clean and Energy Technology (ICE) Venture Fund II will be a follow on to BDC’s ICE Fund I, which launched in 2011. The ICE team now has $287 million under management.

“Our goal is to intensify our support for innovative Canadian entrepreneurs who are leading the way in the transition to a low-carbon economy,” said Jérôme Nycz, executive vice president of BDC Capital. “Our first ICE fund demonstrated strong performance against international peers in a market that is a key target industry for the government of Canada.”

BDC Capital’s first ICE fund invested in 18 firms, including quantum computing company D-Wave Systems, IoT software provider Bit Stew (which was recently acquired by General Electric), data centre power management provider Ranovus, CO2 utilization company, CarbonCure, and power conversion company GaN Systems.

Fund II will invest in late seed and Series A companies, with some consideration for Series B companies. The fund plans an initial five-year investment period followed by a five-year harvest period in anticipation of exits.

“This new fund carries on our successful model of investing in highly scalable, capital-efficient ventures,” says Tony Van Bommel, senior managing partner of ICE Funds I and II. “We seek to bring Canadian technologies to the world and accelerate resource efficiency, while targeting significant investment returns. Our existing fund has invested in all regions of the country and includes some of Canada’s most successful venture-backed companies.”