Toronto-based venture firm Round13 Capital is set to acquire TIMIA Group, a Vancouver-based venture debt platform, for $6.5 million CAD.
The deal includes a $4.5 million cash payment and a $2 million debt repayment to Pivot Financial, a TIMIA creditor. This acquisition gives Round13 Capital full control over TIMIA’s business, including its equity stake in TIMIA’s investment funds.
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Expanding Financing Capabilities
TIMIA specializes in lending to B2B software companies, targeting firms with annual recurring revenues between $2 million and $50 million. With this acquisition, Round13 Capital plans to inject significant new liquidity into TIMIA, expanding its lending capabilities. Round13 managing partner Brahm Klar stated that the deal will allow the venture firm to offer a more comprehensive suite of financing options for tech businesses.
Strengthening Canada’s Private Credit Market
Founded in 2015, TIMIA has established over $200 million in loan facilities and supported 80 portfolio companies. The acquisition allows Round13 to expand into the Canadian private credit market, a unique move for a venture capital firm typically focused on equity investments.
The deal is expected to close by the end of October, pending standard closing conditions.
