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TIMIA Announces $10 Million in new Capital to Invest in SaaS Companies for its Second Limited Partnership
Monday, July 20, 2020Company Profile | Follow Company
~Accessing non-dilutive capital for its fintech platform and recurring revenue financing model~
Vancouver, BC, July 20, 2020--(T-Net)--TIMIA Capital Corporation (TSX-V:TCA) today announced that it has received approximately $10 million (US$7.5 million) in subscription agreements towards the second Limited Partnership ("LP2").
The Company expects to complete the first closing on or before July 21, 2020. All funds are in Canadian dollars unless otherwise stated.
LP2 will build on the successful closing of the first limited partnership in 2019 which raised $18 million. Upon completion of customary closing conditions for LP2, TIMIA will have approximately $10 million of new capital to invest in software-as-a-service ("SaaS") companies in North America as its assets under management ("AuM") increases 34% from approximately $29 million to $39 million. Similar to the first LP announced in 2019, management expects to have further closing in LP2, which will further increase AuM over the next 12 months.
"Our increased AuM and related investment capacity provides the resources for us to drive additional investments, revenue, and ultimately reach our goal of profitability," said Mike Walkinshaw, CEO of TIMIA. "The LP structure provides the scalability to our non-dilutive capital acquisition strategy and allows us to continue investing in exciting SaaS companies through our fintech platform. I look forward to providing you with an update on additional investments in existing or new portfolio companies as they arise."
"TIMIA's existing portfolio continues to see stability through the COVID downturn, making this a robust asset class to lend to. As funding from traditional banks, venture capital and private equity funds is pulled back in light of the pandemic, TIMIA is seeing an increase in quality companies seeking growth capital through the next 12 months. TIMIA anticipates that this will allow TIMIA to continue to deliver strong risk adjusted returns to limited partner investors, while growing fee and performance revenue for common shareholders."
Transaction Highlights Include:
TIMIA says it is is continuously seeking new and exciting investments in the software as a service or SaaS industry. Under TIMIA's revenue-based financing model, TIMIA advances capital to SaaS businesses with recurring revenue streams allowing the portfolio company to make monthly payments, which are a combination of principal and interest, to TIMIA with a repayment schedule sculpted to the portfolio company's revenue streams.
The amounts advanced are secured and may be repaid early. TIMIA expects to make further investments in the coming months, in the pursuit of its business model, which is to earn a combination of monthly payments and periodic gains on investments.
About TIMIA Capital Corporation
TIMIA Capital Corporation is a specialty finance company that provides growth capital to technology companies in exchange for payments based on monthly revenue. This alternative financing option complements both debt and equity financing, while allowing entrepreneurs and existing stakeholders to retain ownership and control of their business.
TIMIA's singular focus is the fast growing, global, business-to-business Software-as-a-Service (or SaaS) segment. We align ourselves with entrepreneurial management teams growing their sales from $2 million to $20 million in Annual Recurring Revenue. For more information about TIMIA Capital Corporation, please visit www.timiacapital.com
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