Toronto-based Timia Capital has significantly increased its lending capacity by $60 million CAD to better serve North American B2B technology companies. This expansion, supported by a new credit facility from SAF Group, addresses the rising demand for alternative financing solutions. The move positions Timia to provide larger, more flexible debt capital to a growing pipeline of software firms.
Strategic Financial Expansion
The new financing is anchored by a $25 million credit facility from the Calgary-based SAF Group, an alternative investment firm. This capital injection is a crucial component of the total $60 million increase in Timia's lending power. The partnership empowers Timia to scale its support for technology-enabled businesses seeking growth capital without significant equity dilution.
Timia Capital focuses on a specific segment of the B2B technology market, targeting companies with annual recurring revenues between $2 million and $20 million. The firm seeks partners with established product-market fit and gross margins of at least 50 percent. This disciplined approach allows Timia to invest in businesses with proven models and sustainable growth potential.
Meeting Market Demand
As venture capital investors become more selective, many tech founders are exploring alternative funding routes to preserve ownership. They are increasingly adopting a hybrid approach, combining debt with equity to extend their financial runway. This strategic shift has created a strong demand for non-dilutive capital providers like Timia.
Michael Wallace, CEO of Timia Capital, noted a "strong pipeline" of high-quality companies seeking flexible financing for their next growth phase. He stated that founders are deliberately using debt to reduce dilution and maintain control over their businesses. "This facility allows us to support more of those founders with larger investments," Wallace affirmed.
A Track Record of Growth
Founded in 2015, Timia has established a significant presence, providing over $200 million in financing to more than 80 companies. The firm was acquired by Toronto venture capital firm Round13 Capital in 2024, a move that integrated it into a broader suite of financing options. This history underscores Timia's experience and stability in the tech lending space.
The firm's portfolio includes current investments in companies like digital marketing startup Webware AI and telematics software provider BrightOrder. Its successful exits feature notable names such as Clariti, Wagepoint, and FinTech firm Beanworks. These examples highlight Timia's track record of backing and nurturing successful technology ventures across various sectors.
The Broader Private Credit Landscape
The partnership has earned praise from SAF Group, with Managing Director Wylie Johnston highlighting Timia's strong reputation. Johnston expressed excitement about partnering with the team as they expand access to growth financing. This endorsement from a key financial partner validates Timia's founder-friendly and flexible capital model.
Timia's expansion reflects a broader boom in the private credit industry, which is becoming a vital alternative to traditional venture capital. Other Canadian firms, such as Vancouver-based Vistara Growth, are also scaling up to meet this surging demand from tech entrepreneurs. This trend signifies a maturing financial ecosystem for growing technology companies in North America.
Timia Capital's $60 million lending capacity expansion is a timely and strategic move in response to evolving market dynamics. Supported by SAF Group, this initiative empowers the firm to offer more substantial non-dilutive financing to B2B tech companies. Ultimately, this development underscores the growing importance of private credit in fueling sustainable growth for startups across Canada and the United States.