Toronto-based iQ Offices, an operator of premium coworking spaces, has secured $10 million in funding. The backer was BDC Capital‘s Growth & Transition Capital division. The capital infusion will be used to set up four new locations and expand two other locations.
TORONTO, November 22, 2019—iQ Offices, a Toronto-based company that operates premium coworking spaces, recently secured 10 million dollars in non-dilutive growth financing from BDC Capital’s Growth & Transition Capital division to assist with the set-up of four new locations and the expansion of another two. The company currently manages four locations in Toronto and one in Vancouver. Its new spaces will be situated in the downtown areas of Ottawa, Calgary, Vancouver and Montréal. The first two are expected to be ready for occupancy in December, while the Montréal and Calgary offices are slated for March openings.
BDC Capital’s financing is a patient five-year mezzanine loan tailored to meet iQ Offices’ needs for growth. It is made in conjunction with a multi-million equity raise from existing shareholders. BDC Capital is providing sufficient funds for the current expansion plan as well as a working capital cushion.
“iQ Offices is strictly focused on the customer, ‘members’ as we call them, ensuring that we not only provide them the flexibility they need, but a great experience they demand,” says Kareem Sethi, CFO, iQ Offices. “With that we have managed to continue to be profitable from year-one and we are focused on growing responsibly where the member can remain our core focus.”
BDC Capital’s lead on this transaction was Simon Mills, Director, Growth & Transition Capital for the Greater Toronto Area. “iQ Offices is doing an excellent job of differentiating its workspaces by fusing high-end, modern designs with an enhanced focus on privacy and modularity,” remarks Mills.
“The company’s experienced and talented management team is going to great lengths to put forth a distinctive offering in the rapidly growing shared office market, and this approach is rewarding them with high occupancy rates. We’re fully buying into the team’s vision for the company’s future and view ourselves as partners in its growth.”
About iQ Offices
iQ Offices is the leading Canadian provider of premium shared office and co-working spaces. It caters to companies interested in flexible, scalable and feature-rich work environments tailored to the modern, mobile-powered organization. Founded in 2012, iQ Offices’ portfolio spans five markets, with five operational locations and four locations under development. Upon completion, iQ Offices’ portfolio will feature a national footprint of more than 3,500 desks. For more information on iQ Offices, please visit www.iqoffices.com.
About BDC Capital
BDC Capital is the investment arm of BDC—Canada’s only bank devoted exclusively to entrepreneurs. With more than $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers a full spectrum of risk capital, from seed investments to transition capital, supporting Canadian entrepreneurs who wish to scale their businesses into global champions. Visit bdc.ca/capital.