NEW YORK (June 28, 2022) — CIBC Innovation Banking, a leading North American financial partner for investors and entrepreneurs, announces the allocation of an additional $1.5 billion of growth capital to support later-stage startups as the venture capital market slows. The new initiative aims to buttress later-stage, venture-backed companies across software, life sciences, healthcare and cleantech industries, with deals ranging from $50-$100 million in capital.
Unicorn Fuel Amid VC Market Downturn
Venture capitalists raised funds at an unprecedented rate in ​​2020-2021. As venture dollars recede, CIBC Innovation Banking, with its non-dilutive capital and founder-friendly terms, is filling the funding void.
The number two bank in loans to the Series A-C market injected over $6 billion into the innovation economy in the last four years, providing debt financing solutions to North American innovation companies ranging from early-stage to those with an enterprise value of over $10 billion. With a AA balance sheet and 150+ year history, CIBC's new allocation builds upon the success and expertise of CIBC's team, which has financed companies such as Crunchbase, Lightspeed, and TigerConnect and generated more than nine IPOs to date. Among those is Expensify, which went public on Nasdaq in November 2021.
“Startup financing may be slowing down, but we are committed to continue to deploy capital so that later-stage companies can continue to embrace opportunities to achieve their ambitions, despite these choppy equity markets,” said Mark McQueen, President and Executive Managing Director at CIBC Innovation Banking. “Our team has financed firms through a lot of tough periods for our sector: the dot-com bubble burst, the 2008 financial crisis, as well as the recent COVID-19 pandemic. This is a time when experience and market heft are crucial.”
Tailored, Flexible Terms For Fueling Growth
Providing its portfolio companies with cross-border networks and financial support, CIBC Innovation Banking works closely with the companies it lends to, as the team supports ide a company's growth through every step of the IPO journey.
“We chose to work with CIBC Innovation Banking because they were so familiar with our needs, and so flexible in trying to come up with a structure that accommodated our unique business model. At every step of the process, they were so supportive and so creative that we just realized, well – we've got a partner for life here,” said Expensify founder, CEO and Director David Barrett.
CIBC Innovation Banking has opened nine U.S. offices to date: Atlanta, Austin, Boston, Chicago, Denver, Menlo Park, New York, Reston and Seattle, scoring strong lead talent along the way at every level.
Building on its U.S. growth, CIBC Innovation Banking opened its office in London last September to support the ambitions of UK-based entrepreneurs and their Venture Capital-backers.
For more information about partnering with CIBC Innovation Banking, please visit: https://www.innovationbanking.cibc.com/unicorn_fuel
About CIBC Innovation Banking
CIBC Innovation Banking delivers strategic advice, cash management and funding to innovation companies across North America, the UK, and select European countries at each stage of their business cycle, from startup to IPO and beyond. With offices in Atlanta, Austin, Boston, Chicago, Denver, London, Menlo Park, Montreal, New York, Reston, Seattle, Toronto and Vancouver, the team has extensive experience and a strong, collaborative approach that extends across CIBC's commercial banking and capital markets businesses.
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