A prolific investor in climate-tech corporations in Canada is again with a second fund for “low-carbon applied sciences” — solely this time the agency plans to pump much less cash into the scene, over an extended time period.

The Enterprise Improvement Financial institution of Canada (BDC) got here out with a brand new, $400 million climate-tech fund on Wednesday, which it referred to as a “renewed dedication” to assist construct “world-class Canadian cleantech” corporations.

The BDC is owned by the state and was set as much as drive financial improvement in Canada. Its current enterprise offers embrace becoming a member of Samsung in a spherical for VueReal, which makes tiny, low-energy shows. And earlier this yr, BDC chipped in with Toyota to fund e-Zinc, which builds zinc-air batteries that might assist utilities retailer renewable power for when the solar will not be shining.

The BDC debuted its first local weather fund in 2018, with $600 million that it invested regionally over 4 years. The funding company plans to make its second, smaller fund final 5 years, at the same time as local weather change accelerates.

Requested concerning the pullback, fund managing accomplice Susan Rohac instructed TechCrunch that the agency is “sizing the provide to a extra strong market with many extra companions that we are able to work with.”

Based on Rohac, BDC’s first fund was as massive because it was as a result of it was made to “handle the shortage of danger capital” for local weather and clean-tech startups in Canada. Since then, “for each $1 that [BDC] dedicated, $6 has been raised in extra funding from the personal sector by our portfolio corporations, concurrently or after we invested,” Rohac stated. In different phrases, the agency argues its supersized first fund created “extra personal sector urge for food,” which is able to apparently make up for the BDC Cleantech Apply‘s downsized second act.

To this point, BDC says it has funded 50 climate- and clean-tech corporations through the fund, which places it in the identical camp as different busy buyers within the scene, together with Lively Influence Investments and Sustainable Improvement Know-how Canada (which can also be backed by the Canadian authorities).