Latest news with #BDC
Yahoo
2 days ago
- Business
- Yahoo
BDC VC report issues collective wakeup call: investing in our own businesses now is a 'must have'
MONTREAL, May 27, 2025 (GLOBE NEWSWIRE) -- The latest edition of the Business Development Bank of Canada's (BDC) 2025 Venture Capital Landscape report paints a rather mixed portrait of the ecosystem, but a deeper dive shows the chill effect of a global trade war with the US, and its impact as we move into 2025. BDC's report makes the case for Canadian investors to rise to the moment by investing more in great Canadian companies to leverage their incredible economic value. 'Of all the insights from the report, Canada's high dependency on foreign capital, while not news, is particularly alarming in today's landscape. It's a collective wakeup call to the industry and major Canadian corporations: fostering Canada's culture of innovation, here and now, is a must have going forward,' says Geneviève Bouthillier, EVP, BDC Capital. 'Canadian investors are highly dominant in seed and early stages, but it is foreign investors, particularly from the U.S., who claim a greater portion of investments in later and growth equity stages. Canada's high growth firms are already relocating or being acquired. Looking ahead, and if we don't fund our companies here with Canadian capital today, we risk losing our champions.' Overall, optimism in the Canadian venture capital (VC) ecosystem improved slightly in 2024 as interest rates and inflation came down and the economy expanded modestly. VC investment activity in Canada saw a notable increase in 2024 (+10%), breaking a two-year decline, with $7.9 billion invested. The VC Landscape report is a deep examination of the VC asset class in the country; it leverages BDC's extensive data set to offer a comprehensive, data-based view of the industry's dynamics. Key highlights include: Canada's VC performance deteriorated last year with a 10-year net internal rate of return (IRR) at 10%, thus deepening the gap with the U.S. The U.S. IRR performance still fares well while Canada lags behind. Seed, early and later stages saw a decline both in terms of dollars invested and deal volumes. Ontario, British Columbia, and Quebec accounted for 86% of the total VC activity by value last year, up from 77% in 2019. Fundraising activity has slowed, with a median time to fundraise remaining at four years for the second consecutive year. Artificial Intelligence (AI) captured 30% of all VC investments, indicating its pivotal role in driving innovation and value creation. More than half of all investments in Canada (57%) went towards the information and communication technology (ICT) sector last year. Life sciences and the energy and clean technology (ECT) sectors came second and third in terms of investments. Exit activity continues to be constrained, except for a few big-ticket deals, while the initial public offerings (IPO) drought continued. Only 7% of Canadian unicorns exited in 2024. This created a tough market, with significant capital locked in, while awaiting more favorable conditions to realize returns. Uptick in valuations: There is an increase in up rounds and a notable decline in down rounds. This means that more start-ups are raising new funding at higher valuations, suggesting positive momentum in valuations. Established managers continue to expand, resulting in contraction of the emerging managers' share. Despite liquidity constraints, the available capital in the ecosystem is adequate (at $11.5B) to support the VC landscape in the near term. On the brighter side, VC investment is still way above pre-pandemic averages, witnessing faster growth than global VC and average deal sizes are expanding, suggesting that investors are focusing on fewer but more established companies. The VC share of GDP saw an uptick in 2024, moving Canada up two spots and now ranking 6th among a sample of OECD nations. Driven by lower GDP growth and higher total VC investments, this ranking underscores VC's vital role in creating wealth, powering innovation and job creation. As the most active VC investor by number of transactions, BDC's investment arm is committed to supporting innovative Canadian companies in their formative phase by backing them with a full range of capital solutions and advice to accelerate their scaling journey. By collaborating closely with the ecosystem, BDC Capital is advancing Canada's competitiveness, prosperity and autonomy. For more information and to access the full report, please visit BDC's website. (Note: This report is based on the Canadian Venture Capital & Private Equity Association (CVCA)'s year-end 2024 Canadian Venture Capital Market Overview. On May 14th, the CVCA has subsequently published revised data for 2024, increasing the total dollars invested to $8.5 billion for the year. The overall conclusions remain consistent.) About BDC: 80 years as Canada's bank for entrepreneurs BDC is a partner of choice for all entrepreneurs looking to access the financing and advice they need to build their businesses and tackle the big challenges of our time. Our investment arm, BDC Capital, offers a wide range of risk capital solutions to help grow the most innovative firms. BDC's development role means we are in a state of perpetual evolution – wherever entrepreneurs go and whatever the Canadian economy needs – we will be there to help them defy the odds. 80 years later, that commitment remains very much alive. BDC's financing services in 2025 alone will add an estimated $25 billion in GDP to Canada's economy over the next five years. We are one of Canada's Top 100 Employers and Canada's Best Diversity Employers, and the first financial institution in Canada to receive the B Corp certification in 2013. For more information on our products and services and to consult free tools, templates and articles, visit or join BDC on social media. BDC Media Relationsmediainfo@ in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Belden Inc.'s (NYSE:BDC) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?
It is hard to get excited after looking at Belden's (NYSE:BDC) recent performance, when its stock has declined 5.5% over the past week. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Specifically, we decided to study Belden's ROE in this article. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Belden is: 17% = US$213m ÷ US$1.2b (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.17 in profit. See our latest analysis for Belden We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. To start with, Belden's ROE looks acceptable. Especially when compared to the industry average of 11% the company's ROE looks pretty impressive. Probably as a result of this, Belden was able to see an impressive net income growth of 20% over the last five years. We reckon that there could also be other factors at play here. Such as - high earnings retention or an efficient management in place. As a next step, we compared Belden's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 11%. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. Has the market priced in the future outlook for BDC? You can find out in our latest intrinsic value infographic research report. Belden has a really low three-year median payout ratio of 3.8%, meaning that it has the remaining 96% left over to reinvest into its business. So it looks like Belden is reinvesting profits heavily to grow its business, which shows in its earnings growth. Moreover, Belden is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to drop to 2.5% over the next three years. On the whole, we feel that Belden's performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Wall Street Journal
21-05-2025
- Business
- Wall Street Journal
Private-Credit Growth Fueled by Banks May Pose Risks
Investment bank loans to private-credit firms could pose a growing risk to the stability of the financial system, according to economists from the Federal Reserve Bank of Boston. The private-credit industry's rapid expansion has been accompanied by rising bank lending to the industry, including loans to firms and business development companies, or BDCs, that act as nonbank lenders. Banks often finance this lending by nonbanks.
Business Insider
20-05-2025
- Business
- Business Insider
CBN holds monetary policy rate at 27.5% amid economic adjustments
Nigeria's Monetary Policy Rate (MPR), the nation's benchmark interest rate, has been kept at 27.5 percent by the Central Bank of Nigeria (CBN) through its Monetary Policy Committee (MPC). The Central Bank of Nigeria maintained the Monetary Policy Rate at 27.5%. Governor Olayemi Cardoso highlighted unanimous support for the decision by the Monetary Policy Committee. Key macroeconomic improvements were noted, including narrowing exchange rate gaps and food inflation moderation. Following Tuesday's MPC's 300th meeting, CBN Governor Olayemi Cardoso revealed the decision at a press event in Abuja. The CBN governor noted that the committee's decision was unanimous, highlighting the necessity of exercising caution as Nigeria negotiates continuous economic changes. Before making any more changes, he said, the MPC thinks that keeping the interest rate at its current level will enable it to monitor and evaluate short-term economic trends. The committee decided to keep the liquidity ratio at 30% and the cash reserve ratio (CRR) at 50%. 'MPC noted the relative improvements in some key macroeconomic indicators expected to support the overall moderation in crisis in the near to medium term,' Cardoso said. 'These include the progressive narrowing of the gap between the Nigerian foreign exchange market, bureau de change (BDC) windows, the positive balance of payments position, and the easy price of PMS. The members also noted with satisfaction the progressive moderation in food inflation and, therefore, commended the government for implementing measures to increase food supply, as well as stepping up the fight against insecurity, especially in farming communities. The committee thus encouraged security agencies to sustain the momentum while the government provides necessary inputs to farmers to further boost food production.' However, according to the governor of the CBN, the committee recognized that there were underlying inflationary pressures, primarily caused by high electricity costs, ongoing need for foreign exchange, pressure, and other legacy structural elements, as seen on the Cable. 'The MPC noted new policies introduced by the federal government to boost local production, reduce foreign currency demand pressures, and thus lessen the pass-through to domestic crisis,' he said. 'Given the relative stability observed in the foreign exchange market, members urged the bank to sustain the implementation of the ongoing reforms to further boost market confidence,' he added. This decision underscores the committee's commitment to managing inflationary pressures while maintaining economic stability. The MPR is the principal instrument for regulating interest rates in the financial system, affecting loan costs, investment activity, and overall economic development.
Economist
20-05-2025
- Business
- Economist
How data and intelligent applications will reshape business
Businesses have faced more instability in 2025 than in the last 25 years. While the pandemic challenged corporate leaders with supply chain slowdowns and rapidly changing consumer demand related to global lockdown, we're operating in an environment where age-old business rules and conventions are shifting beneath our feet. In fact, the Economic Policy Uncertainty Index shows that since January, daily trade policy uncertainty has spiked to unprecedented levels globally. 1 At the same time, artificial intelligence (AI) promises to be the most significant transformation in business software since the maturity of cloud computing over the last decade. But to fully take advantage of AI, business and technology leaders must address the data silos and complexity within their organisation. How can business leaders stay on top of—and even anticipate—the quickly shifting economic environment and ensure the success of their AI initiatives? The answer lies in creating a holistic data strategy that feeds relevant data into their AI landscape. The new data imperative Every organisation on a digital transformation journey needs to turn intelligence into action at scale. Gartner predicts that by 2028, over 50 percent of enterprises will adopt industry cloud platforms, integrating critical business processes to create a robust, flexible, and agile platform. 2 Chief information officers (CIOs) are already in the process of creating the technology infrastructure required to harness every signal from their business—and that of their extended ecosystem of partners and customers. But to drive reliable decision making and AI efforts, CIOs must harmonise that data into a single, unified and trusted layer. That's where SAP Business Data Cloud (BDC) comes in. This new software service integrates all of a company's most important information—both structured and unstructured no matter where it resides—ensuring that business context and data semantics are preserved and exposed as consumable primary data products reflecting the most critical business processes. BDC provides a fully governed and AI-ready foundation enabling businesses to expose the agility needed to navigate today's volatile landscape. Through a partnership with the Databricks platform, SAP BDC also offers seamless machine learning capabilities to data and AI professionals. The advent of intelligent applications A modern data platform like SAP BDC empowers enterprises to create and use intelligent applications. These can utilise a wide spectrum of SAP data products that promise to reshape how organisations operate—embedding real-time data and critical operational context within AI models to enable swift and insightful decisions. Unlike traditional software governed by rigid business rules, these modern applications can learn and adapt to rapidly evolving customer and market demands—detecting changes to optimise processes, anticipate needs, and collaborate with both human and artificial 'thinkers' to create competitive advantage for your organisation. Intelligent applications align with organisations' most important business functions such as human resources, finance and supply chain. For example, at SAP, People Intelligence is designed to provide HR and business leaders with AI-driven recommendations to optimise talent decisions, drive employee engagement and ensure compliance. At the same time, SAP is actively collaborating with leading partners to build the next wave of intelligent applications including Adobe, Thomson Reuters, Accenture and Moody's. By working together, SAP and its partners aim to enable organisations to navigate the complexities of today's business environment and become truly AI-ready. The future belongs to data-driven organisations SAP customers generate 84 percent of total global commerce and 98 of the 100 largest companies run on SAP systems. In other words, the vast majority of the most important business data powering the global economy runs through SAP software. This is a watershed moment, providing seamless access to information within SAP and non-SAP solutions. In a zero-sum game, only a robust data strategy will allow businesses to deftly navigate volatility, remain agile and keep their competitive edge. Learn more about SAP Business Data Cloud at
