Toronto-based Timia Capital has bolstered its lending capacity by $60 million CAD, giving it the ability to provide larger loans to more business-to-business (B2B) technology companies.
The news: Timia provides debt to B2B tech firms across Canada and the United States, focusing on B2B software-as-a-service and software-enabled companies with product-market fit, with between $2 million and $20 million in annual recurring revenue and gross margins of 50 percent or more. The lender announced on Tuesday that it has expanded its ability to lend to startups that fit this profile by $60 million, thanks to a $25-million credit facility from Calgary-based alternative investment and private credit firm SAF Group.
From the source: In a blog post, Timia CEO Michael Wallace said many tech founders “are deliberately combining equity and debt to reduce dilution and maintain control” amid uncertain venture capital market conditions. He said Timia has identified “a strong pipeline” of companies building sustainable businesses and seeking flexible capital to fuel their growth. “This facility allows us to support more of those founders with larger investments,” he said.
The context: Founded in 2015, Timia’s website claims the firm has provided more than $200 million worth of loans to 80 portfolio companies to date, making this expansion a significant one for the growing tech lender, whose current investments include Toronto-based digital marketing startup Webware AI and Mississauga telematics software company BrightOrder. Timia counts Vancouver-based permitting software provider Clariti, Calgary payroll tech company Wagepoint, and FinTech firm Beanworks among its exits. Toronto venture capital firm Round13 Capital acquired Timia in 2024 to round out its suite of financing options.
Final thought: The private credit industry is booming, and small but growing Canadian players like Timia and larger Vancouver-based peer Vistara Growth—which is raising a new fund of its own—are scaling up to meet demand from tech entrepreneurs.
Feature image courtesy Unsplash. Photo by Romain Dancre.
