Vancouver’s Espresso Capital, which provides venture debt financing to technology companies, announced the first close of its Espresso Fund III at C$35 million. The fund, which is focused on tax credit financing, is expected to be capitalized at over C$150 million. Since 2009, Espresso has deployed over C$40 million in loans to over 130 clients in Canada. Companies recently backed by Espresso include Collabware, MConcierge and Nakina Systems and Skyreader Media.
Espresso Announces First Close of $35M Fund III
April 4, 2013/Gary Yurkovich
We are happy to announce the first close of our $35M Espresso Fund III focused on tax credit financing for Canadian technology companies. We anticipate the total investment program for Fund III will be in excess of $150M.
Espresso Capital has, in many ways, followed a similar path to our clients. We started Espresso Capital to fund credit-worthy technology companies seeking alternatives to dilution from equity financing. We started our first Fund I with only $2M in capital to test the demand for our venture debt services. We refined and expanded the model and the market has shown a significant demand for our SR&ED loans and Digital Media tax credit financings . Our venture debt financings are non dilutive to shareholders and entrepreneurs. The loans are straight forward, fast to engage and easy to pay off without penalties.
Since we started in 2009, we have:
Deployed over $40M in loans to over 130 clients in Canada
Bridged clients to successful 3rd party acquisition
Bridged clients to successful Series A Venture Capital investments
Provided working capital to high growth companies looking to avoid or delay taking equity
Provided Line of Credit insurance to companies to ensure they have a quick source of working capital
Attracted over 40 Limited Partner investors (VC Partners, Tech Executives, Board members)
Established a new financing model for technology companies in Canada
Established a strong network of clients and investors working to build a strong technology industry in Canada.
We look forward to continuing our growth in offering innovative solutions for Canadian technology companies looking for help in “financing the next step”.
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