BioConnect of Toronto obtains $2M from BDC Capital to retain its highly technical staff during the COVID-19 pandemic
TORONTO, July 23, 2020—BioConnect, a high-growth Toronto-based company that provides a unified digital and physical authentication security platform for enterprises globally, has secured financing of 2 million dollars from BDC Capital’s Growth and Transition Capital division to support the business during the COVID-19 pandemic including retaining their highly technical staff. Founded in 2009, BioConnect designs and builds software and hardware solutions that secure doors, data server cabinets and software applications using biometric authentication. During COVID-19, through its BioConnect Cares initiative, the company has released the world’s first Wellness Declaration which users complete to gain access to secured locations in order to help reduce a second wave of the virus. This solution has recently won Best Emerging Technology of 2020 at the Security Industry Association’s New Product Showcase Awards. BioConnect is part of MaRS’s Momentum program for companies on track to reach 100 million dollars in revenue, where it receives extensive support in its drive to scale up quickly.
Although demand has remained strong throughout the COVID-19 pandemic, BioConnect’s ability to physically install products has been impacted. Its leadership team prepared multiple scenarios to determine their maximum potential financing needs during this period. BioConnect’s main objective through the crisis is to keep its team together and building the future since it is made up of highly sought-after software and hardware engineers and other personnel who have strong technical know-how, including in sales and marketing, who would all be difficult to replace. This, however, leaves a funding gap, which is the primary reason why the company reached out to BDC Capital.
BDC Capital’s financing takes the form of a special working capital loan that is part of its program to provide relief to businesses affected by COVID-19. These loans feature favourable interest rates and patient repayment terms designed to give businesses time to recover.
“We are very grateful for the financial support from BDC Capital during COVID to help the company keep focused on ‘Enabling Trust in the Connected World’,” says Rob Douglas, BioConnect’s Founder and CEO. “Since COVID-19 began, the company has been recognized with the ‘Top Emerging Technology’ award announced by ISC West representing the global security industry, has launched a ‘Wellness Declaration’ solution and completed a 10-point transformation to become a ‘Digital 1st’ company. The company has been able to maintain its market focus because of the support from BDC Capital to retain our strong technical team.”
This financing was set up by Kyle Feucht, Director, Growth & Transition Capital at BDC Capital’s Toronto office. “BioConnect was experiencing tremendous success before the pandemic and everything indicates they will return to growth once we come out of it,” declares Feucht. “The market for biometric security products is certainly not going away, and with BioConnect continuing to innovate throughout this crisis we are excited to participate in their growth.”
About BDC Capital
BDC Capital is the investment arm of BDC, the bank for Canadian entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.