Canadian Business Growth Fund: How It Supports Startups & Scaling Companies

Canada is a nation of entrepreneurs — over 1.1 million small and medium-sized enterprises (SMEs) power more than half of the private-sector workforce. Yet, when it comes to scaling, many of these businesses hit a wall. The issue? A funding gap between early-stage capital and large-scale financing.

That’s exactly why the Canadian Business Growth Fund (CBGF) was created — to help mid-sized companies with strong potential grow into national and global leaders, without sacrificing control.

In this blog, we’ll break down how CBGF works, what it offers, who qualifies, and how startups and scaling companies can position themselves to attract this kind of capital — including how Vitality Cash can help prepare your financial foundation.

What Is the Canadian Business Growth Fund?

Launched in 2018, the Canadian Business Growth Fund is a $545 million evergreen investment fund backed by 13 of Canada’s largest banks and insurers. Its mission: to fill the “growth gap” in Canada’s capital market by providing patient, long-term, minority investments to promising mid-market companies.

Why It Matters:

• Traditional VCs often seek quick exits and majority ownership
• Bank loans aren’t designed for high-growth, asset-light businesses
• Mid-sized businesses ($5M–$100M in revenue) are often underfunded

CBGF bridges this divide by investing $3M–$20M in growth-stage Canadian companies, with an emphasis on mentorship, strategy, and sustainable expansion — not just capital.

CBGF at a Glance

The Growth Gap: Why Mid-Sized Businesses Struggle to Scale

Canada has world-class founders, ideas, and talent — but too often, businesses sell early or fail to scale due to limited access to growth capital. This results in:

• Foreign acquisitions of promising companies
• Lost economic value and jobs
• Missed opportunities to develop “anchor firms” like Shopify or CAE

CBGF’s creation was a direct response to these systemic issues. The fund provides not just money, but the time and strategic support companies need to build something lasting — and Canadian.

How CBGF Supports Scaling Companies

1. Flexible, Patient Capital

CBGF invests between $3 million and $20 million per deal. Unlike venture capital firms, it doesn’t push for quick exits. It takes a minority equity stake and holds for the long term.

2. Strategic Partnerships

Investments come with more than capital. CBGF provides:

• Board-level guidance
• Access to a national Talent Network
• Introductions to sector experts and advisors

3. National Impact

The fund invests across Canada in diverse sectors — from fintech to automotive to retail. It’s not industry-restricted (except real estate and resource extraction) and seeks to reflect a “microcosm of the Canadian economy.”

Notable CBGF Investments

Lift Auto Group

Lift Auto Group, a consolidator of automotive collision repair centers in Western Canada. CBGF’s funding helped them scale operations and acquire smaller regional players.

PayBright (Acquired by Affirm)

PayBright, a Toronto-based fintech offering point-of-sale consumer financing. CBGF’s investment supported product expansion and national growth before its high-profile acquisition.

Think Research

Think Research, a healthtech company building digital clinical solutions for physicians and care providers. CBGF helped fund its growth before going public on the TSX Venture Exchange.

These examples illustrate CBGF’s focus: supporting proven business models on the cusp of significant scale.

CBGF vs. Venture Capital vs. Bank Loans

Who Qualifies for CBGF?

CBGF looks for Canadian companies that are beyond the startup phase, typically with:

• $5 million+ in annual revenue
• Strong management teams
• Clear path to scale
• Proven business model in a growing market
• Ambition to stay Canadian-owned

If you’re not quite at that revenue level but preparing to scale in the next 12–24 months, there’s still a smart way to prepare — and that’s where Vitality Cash comes in.

How Vitality Cash Helps Businesses Get Investor-Ready

If your goal is to attract growth capital — whether from CBGF, BDC, or other strategic investors — you need more than a pitch deck. You need financial clarity and cash flow confidence.

Vitality Cash gives you:

• AI-powered cash flow forecasting
• Scenario planning for growth, hiring, and expansion
• Real-time dashboards for revenue, expenses, and runway
• Investor-grade financial models and analytics
• Guidance on capital efficiency and fundability

We work with founders and finance teams to ensure your business isn’t just fundable — it’s built to last.

Before you scale, you need to stabilize. Vitality Cash helps you do both.

Final Thoughts

The Canadian Business Growth Fund is more than a pool of capital — it’s a national-scale effort to build the next generation of Canadian business leaders.

If you’re a founder or executive looking to scale, now’s the time to:

1. Strengthen your financial foundation
2. Build operational excellence
3. Position yourself for strategic, non-dilutive capital

Vitality Cash is here to help you do just that.