RBC Launches $1.4-Billion Fund to Scale Canadian Tech Companies
Royal Bank of Canada is introducing the RBCx Growth Fund, a US$1-billion initiative aimed at helping Canadian technology firms scale globally without relocating or relying heavily on foreign capital.
Royal Bank of Canada (RBC) is launching the RBCx Growth Fund, a $1.4-billion CAD (US$1-billion) initiative designed to invest in Canadian technology companies and help them scale into global entities. The fund aims to support these companies without requiring heavy reliance on foreign capital or relocation to the United States.
The fund targets five key sectors: enterprise software, health tech, frontier tech (including aerospace, defence, and quantum), energy and climate tech, and agriculture tech. RBC will invest up to $416-million (US$300-million) directly, with the remainder coming from other investors. The fund plans to take direct equity investments in up to 15 companies. Additionally, RBCx has identified 50 other companies with about $70-million in revenue that meet the fund's investment criteria.
RBC CEO Dave McKay stated that the percentage of growth capital coming from domestic Canadian investors has dropped from about 50% to 33%. Among the top 20 growth companies in Canada, early-stage funding was led by Canadian investors 70% of the time, but this figure fell to 20% for later-stage funding. In contrast, approximately 75% of growth capital in the United States comes from domestic investors.
McKay plans to pitch the fund at the upcoming Canada Investment Summit next week, aiming to attract both domestic and international investors to address the decline in Canadian growth-stage capital. A report by RBC and McKinsey suggests that Canada could unlock $1-trillion in incremental capital expenditure over five years, which would translate to $950-billion in GDP and up to 1.4 million direct jobs.
The initiative also aligns with broader efforts to retain ownership, influence, and economic benefit within Canada, reducing dependence on foreign capital that often drives entrepreneurs to move to the U.S. It supports Ottawa’s efforts to diversify trade and global partnerships away from the United States. For context, JPMorgan Chase announced last year it would invest US$1.5-trillion over 10 years in industries bolstering the U.S. economy, recently expanding support to Europe, Britain, and Canada.