CIBC Innovation Banking on Tuesday (February 22nd) provided financial solutions, including a credit line to call up capital, to investment firm Graphite Ventures in its early stages before entitlement to Serie A rounds.
According to a joint press release, the capital call mechanism will allow Graphite to make investments in portfolio companies before capital outflows from limited fund partners. Graphite will continue to support early-stage company investments across Canada, allowing them to scale around the world.
“The team behind Graphite has demonstrated an effective investment strategy over the years, and CIBC is proud to support them in their future portfolio investments,” said Rob Rosen, Managing Director of CIBC Innovation Banking in Toronto.
“They’ve consistently supported companies at an early stage to help them get to Serie A and beyond, and we’re excited to see how they continue to help fuel Ontario’s thriving innovation startup ecosystem,” Rosen said.
The fund focuses on B2B software as a service (SaaS), digital health, real estate technology, technology and hardware businesses. Graphite has closed eight investments and raised $ 77 million in capital, with $ 100 million planned by the end of the year.
“CIBC Innovation Banking is a valuable partner in the ecosystem, and they have supported many of our portfolio companies by providing competitive banking solutions,” said Aaron Bast, general partner of Graphite Ventures.
“Our CIBC capital call mechanism will help us effectively deploy capital in our investments, which is an integral part of our fund’s operations,” Bast continued. “We look forward to continuing to work with CIBC as we expand Graphite Ventures and the portfolio companies we support.”
Earlier this month, CIBC Innovation Banking provided $ 100 million as a loan to the Expensify payment super application to help the company grow and add more products.
Related: Expensify Lands is a $ 100 million loan from CIBC Innovation Banking
Expensify provides free corporate cards, expense tracking, next day reimbursement and related services such as billing, bill payment and travel booking for 10 million members, and integrates with every major accounting software and multiple human resources (HR), taxes, practice management and travel platforms.