Funding will support Novarc Technologies’ growth plans.
VANCOUVER, B.C. and MONTREAL, Que., February 25, 2021 – BDC Capital has provided $2.6M in growth capital to Novarc Technologies through its new intellectual property (IP) Backed Financing Fund. This is the first transaction for the $160M fund which was launched in July 2020 and offers customized, patient capital to IP-rich Canadian companies.
Founded in 2013, Novarc Technologies is a Vancouver-based robotics company that specializes in the design and commercialization of collaborative robots (cobots) for industrial applications. Their cutting-edge Spool Welding Robot (SWR) allows pipe fabrication companies serving the oil & gas, building construction, and shipbuilding industries to be more competitive when bidding on projects by dramatically increasing the productivity and quality of their pipe welding operations.
“With our focus on AI and Robotics, we recognized early on that protecting our IP was a priority,” says Soroush Karimzadeh, CEO and Co-founder, Novarc Technologies. “BDC Capital saw the strength of our IP through our business model and have not only provided funding to help us expand our team and support our global trajectory, but also have provided strategic advice to help us protect our intangible assets which are core to our business. BDC’s IP-Backed Financing Fund is a unique non-dilutive product that we were missing in the financing ecosystem in Canada which can help bridge seed/strategic investment rounds to profitability.”
According to the American Welding Society, there is a looming labour crisis that will escalate to a shortage of about 400,000 welders by 2024. Novarc helps fill this gap by providing an affordable automation solution to support welders in pipe fabrication shops. They will use the proceeds of this transaction to increase the company’s technical capabilities, expand their team with strategic hires across sales, marketing, finance and R&D, as well as support their growth plans.
“The pandemic has highlighted the need for increased automation and Novarc is poised for growth thanks to their innovative technology and forward-thinking IP strategy. We are excited to support them on their journey, and share their story to inspire other companies to leverage and protect their own IP,” says Leonard Kofman, Partner and deal lead, BDC Capital.
Since launching last year, BDC Capital’s IP-Fund team has already grown to support a strong pipeline of companies. The team provides financing in the form of debt, convertible notes, and equity to accelerate the commercialization of scaling companies in knowledge-based industries with rich IP portfolios including patents, design, and trade secrets and at least $1M in annual revenue.
“IP is the currency of innovation and often a company’s most valuable asset,” says Lally Rementilla, Managing Partner, BDC Capital. “Our investment process allows us to use this asset to help generate additional insights on a company’s credit-worthiness and future potential.”
Since Novarc launched the collaborative SWR in 2016, the company has experienced significant growth, both in revenue and employees, and ranked 45th among Canada’s Top Growing Companies in 2020, with 1235% growth from 2016 to 2019. Just two years after launching the SWR, Novarc expanded its North American sales and support network into Europe, Asia and the Middle East as it entered a global partnership with ABICOR BINZEL. Through the strength of this partnership, and a talented sales team, Novarc has continued its customer traction to almost double its sales of SWRs in the challenging year of 2020 and is expected to continue on this growth path in 2021.
About BDC Capital:
BDC Capital is the investment arm of BDC—Canada’s only bank devoted exclusively to entrepreneurs. With $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.
About Novarc Technologies Inc.:
Novarc Technologies is a Canadian-based robotics company specializing in the design and commercialization of cobots for industrial applications. Novarc’s Spool Welding Robot (SWR) is the world’s first of its kind in pipe welding applications. As a proven pioneer in the field, Novarc has a dedicated team of engineers and scientists to solve challenging industrial automation problems that improve customers’ bottom line. Visit novarctech.com.
Contact:
BDC Media Relations, 1 844 625-8321, mediainfo@bdc.ca
Debra Hadden, Novarc Technologies Inc., 1 604 240-3196, debra@novarctech.com