A Business Development Company or BDC is a company regulated by Section 54 of the Investment Company Act of 1940. It is similar to, but different from, a venture capital company. It is a company created to assist start-up companies to grow in their initial stages. They allow small, non-accredited investors to invest in start-up companies.
Business Development Companies provide permanent capital to their management and assist start-ups with mezzanine financing opportunities. They are public companies listed on one of the stock exchanges. They can be classified as publicly traded private equity firms.
A Business Development Company is helping Alpha Company, Inc., who wants to produce a new type of widget, raise money to start-up its operations.
