CIBC Innovation Banking Announces $1.5 Billion Growth Capital Commitment



CIBC Innovation Banking Announces $1.5 Billion Growth Capital Commitment

Techcrunch | Christine Hall | Jun 28, 2022

Growth equity - CIBC Innovation Banking Announces $1.5 Billion Growth Capital Commitment

Growth equity

At a time when U.S. venture dollars are slowing down, CIBC Innovation Banking is announcing $1.5 billion in growth capital commitments, dubbed “Unicorn Fuel,” to focus on later-stage companies across software, life sciences, healthcare and clean tech industries.

Venture capital firms raised funds over the past 2 years at what Mark McQueen, president and executive managing director at CIBC Innovation Banking, called an “unprecedented rate,” but as that has begun to recede, he says CIBC is in position to fill in with its nondilutive capital. The new fund will enable the bank to make deals ranging from $50 million to $100 million in capital.

See:  Osler Deal Points Report: Insights into Venture Capital Deals and Financings

“Our role is to help both the entrepreneur and their VC partners grow that business with incremental capital,” he told TechCrunch. “We don’t replace equity, but extend the runway. Our opportunity in good times is to allow VCs to sit on their dry powder while we use the bank’s capital to help grow their portfolio companies.”

Though valuation is “hard to put your finger on,” McQueen said, if CIBC can, it looks to extend the company’s capital runway by 18 months to 2 years.

Continue to the full article –> here

NCFA Jan 2018 resize - CIBC Innovation Banking Announces $1.5 Billion Growth Capital CommitmentThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: