Finalta Capital Announces Close of $31 Million Funding Round Led by Fonds de solidarité FTQ
Canada's largest private debt fund financing tax credits and government grants surpasses the threshold of more than $500 million in cumulative financings
MONTRÉAL, June 14, 2024 /CNW/ - Finalta Capital, the largest private debt fund financing tax credits and government grants in Canada, announced today the closing of its oversubscribed eighth round of funding, led by the Fonds de solidarité FTQ, an investor since 2017. The $31 million raised will be used to support the fund's rapid growth. Finalta Capital is an evergreen fund that has surpassed the threshold of more than $500 million in cumulative financings since 2012.
"With this round, Finalta Capital cements its position as a leading lender supporting highly innovative small and mid-sized businesses. Our aim over the next two years is to provide an additional $100 million to additional companies in the form of tax credit and government grant financing," said Finalta Capital CEO Maxime-Jean Gérin.
"Finalta Capital lends double the funds that traditional financial institutions would be willing to lend based on the same tax credits and disburses the loan even before tax credit-eligible expenses are incurred, enabling fast-growing innovative companies across Canada to significantly accelerate their strategic projects by providing them with enhanced, non-dilutive liquidity," explained Pierre-Luc Labelle, President and COO of Finalta Capital.
"Since 2012, Finalta Capital has become an important player in the financial ecosystem of innovation. We are therefore delighted to invest once again in the Finalta Capital fund so that it can continue supporting technology and manufacturing companies who want to speed up their growth through innovation," said Saloua Benkhouya, Vice-President, Private Equity and Impact Investing – Services, at the Fonds de solidarité FTQ.
Finalta Capital offers a financing solution that is better suited to meet the requirements of innovative companies at the seed, growth and expansion stages.
By financing such an important asset on the balance sheet of innovative companies, Finalta Capital provides them with a permanent advantage by limiting dilution at a time when their valuation is set to gain the most, completing financing rounds more quickly, and extending their runway to reach better valuations at the next funding round. The increased cash flow also allows them to invest more in innovation and accelerate the hiring of key personnel.
Finalta Capital is the largest private debt fund financing tax credits and government grants in Canada, supporting innovative, fast-growing companies by providing them with enhanced, non-dilutive financing on the basis of tax credits and government grants receivable, with disbursements made even before tax credit-eligible expenses are incurred. Visit our website: www.finaltacapital.com.
The Fonds de solidarité FTQ is a source of pride in Québec, fulfilling its mission through a unique business model created 40 years ago. Since then, the Fonds has rallied Québec into action thanks to the retirement savings of 769,459 shareholders.
With net assets of $18.9 billion as at November 30, 2023, the Fonds supports more than 3,700 companies through venture and development capital investments based on the belief that impact is created as much by financial as social returns.
SOURCE Fonds de solidarité FTQ
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