BDC Venture Capital announced Monday that it was extending convertible notes to 10 recent graduates of the Launch36 accelerator program. Each graduate will be getting US$150,000.

Initially, these notes will act as a loan to help the startup company grow its business. This also served as a stamp of approval from the most active venture capital funds in Canada. Afterwards, the convertible notes become an equity investment after the close of the firm's first full funding round.

"Making first-time investments in such promising startups is part of our strategy to build a healthy Canadian ecosystem. We'll also be looking at connecting these entrepreneurs with angel and venture capital as well as providing them other forms of non-financial support," said Senia Rapisarda, Vice President of BDC Venture Capital, in a statement.

The program prepared 18 companies within 15 months for investment and the market. In future, the accelerator said it will partner with BDC to assess program graduates who were venture ready. These venture-ready graduates would be eligible to receive venture capital.