Victoria-based background-check technology startup Certn and Toronto-based software rollup company Quadshift are benefiting from the Business Development Bank of Canada’s (BDC) bolstered venture capital arm this week, securing a combined $53 million in funding from the agency’s recently topped-up investment vehicles.
Certn raised $30 million from BDC Capital’s Growth Venture Fund. According to BDC, Certn will use the capital to expand its artificial intelligence (AI)-powered background checks.
Founded in 2016 by Andrew McLeod, Evan Dalton, and Owen Madrick, Certn provides a software platform to facilitate the pre-employment background screening process, meant to help businesses hire more quickly while also managing risk.
In June 2024, the federal and British Columbia privacy commissioners launched a joint investigation into Certn’s use of personal data and compliance with Canadian and BC privacy legislation, particularly as it relates to its tenant-screening services, which the company said it was co-operating with.
Certn also tapped seasoned leader Sarah Miller Wright to become its first president and oversee its global operations last year. However it appears that, after less than a year in the role, Miller Wright is no longer with the company. Her LinkedIn profile states that her employment with Certn ended in January 2025, and she is no longer featured on the leadership page of Certn’s website. The last version of the webpage archived on the Wayback Machine last shows Miller Wright listed on the leadership team on Dec. 9, 2024.
Following publication, CEO McLeod confirmed to BetaKit that Miller Wright departed Certn, but declined to disclose the reasons behind her departure. McLeod added that Certn is not looking to replace her role.
Meanwhile, verticalized business-to-business (B2B) software rollup company Quadshift raised a $23 million CAD all-equity round led by BDC Capital’s Growth Equity Partners program, with participation from Celtic House Venture Partners and undisclosed minority investors. Quadshift will use the funding to accelerate its acquisition pipeline, the company said in a statement.
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Founded in 2017, Quadshift looks to build businesses through strategic acquisitions, then supporting their growth through strategic guidance, best practices, and resources in finance, marketing, sales, IT, and product development. Quadshift says it seeks out profitable vertically-focused B2B subscription software companies that make between $500,000 and $10 million in revenue. Quadshift currently has 13 companies in its portfolio, CEO John Paterson told BetaKit in an email statement.
“Quadshift is a resonating fit with BDC Growth Equity’s mandate to support Canadian entrepreneurs, and we look forward to our partnership and helping the team drive growth through both continued acquisitions and organic initiatives,” Michael Notto, partner at BDC Growth Equity Partners, said in a statement.
The funding rounds follow BDC Capital announcing today that it is injecting nearly $1 billion across the Growth Venture Fund and the Growth Equity Partners program. The bank funneled $500 million into the Growth Venture Fund and expanded its mandate to include both direct investments and co-investments. Additionally, BDC committed $450 million to its Growth Equity Partners program.
Backed by the Canadian government, BDC Capital is the country’s largest and most active venture capital investor, with more than $6 billion in assets under management.
UPDATE (02/19/2025): This article has been updated with commentary from Quadshift CEO John Paterson and Certn CEO Andrew McLeod.
Feature image courtesy of Certn.