Vancouver's Espresso Capital Partners announced this morning the closing of their first fund - the CAN $2 Million SRED Fund I.
The fund will be used to finance growing, high technology, research and development focused companies using the Scientific Research and Experimental Development (SR&ED) application as collateral.
Greg Smith, founding partner explains: "Many innovative companies are looking for bridge financing to get them to the next level. They may be on the verge of closing a major equity financing, rolling out new product or have a temporary need for cash to deliver on a customer order. In all these cases Espresso Capital, can play a significant role in providing financial assistance to help them through their working capital issues and leverage their future enterprise value higher."
Espresso's services couldn't come at a better time with capital markets tight and banks becoming more risk adverse. Tech companies with a bright future have been struggling to find sources of capital and Espresso provides a needed source of financing IF the applicant has a solid track record of preparing and filing SR&ED claims.
The SRED I fund has been busy this year with transactions dating back to February 2009. Among the completed transactions are financing recipients Wolf Medical, Invoke/Hoostsuite, DreamBank, and Tagga.
Founded in 2009, Espresso Capital Partners is privately held and services all areas of Canada with offices in Vancouver and Toronto and representation in Calgary. Founding partners include Greg Smith, Gary Yurkovich, Chris Welsh, and Garron Helman.