2019: A Year in Review

By Michael Walkinshaw

Posted December 3, 2019

 

As we head into the Holiday Season, it’s always nice to reflect on the hard work that brought us to this point. 2019 has been a record-breaking year for TIMIA Capital.

We attended dozens of events to meet with new SaaS companies across the continent. We spread the word about the importance of building your SaaS with customer cash and only taking on capital when absolutely necessary.

We also added a massive $14 million in revenue financing funds, bringing our total loan book to $21 million. This financing is supporting the growth of the SaaS companies in our portfolio.

Portfolio Company Success in 2019

Rob and Jennifer (Metazoa) at Dreamforce

In 2019, TIMIA helped a number of new SaaS entrepreneurs grow their businesses with revenue-based financing. These companies, along with the others in our portfolio, had average year-over-year revenue growth of 50%.

Overall, our portfolio added more than $15 million worth of value to their companies—with no dilution of their equity.

You can read about some of the promising companies we provided funding to in 2019 here:

  • Metazoa, a Salesforce ISV based in California
  • Verismic, a cloud management platform company based in Aliso Viejo, California
  • TransitScreen, a transit analytics platform company based in Washington, DC
  • Sureify, an insurance platform company based in San Jose, California
  • Echosec, web-based data discovery platform company based in Victoria, BC, Canada

2019 also saw a successful exit from our investment in Real Savvy, a platform for real estate agents and brokers, which sold to OJO Labs in October.

Goals for 2020

Our small but mighty team is excited to enter 2020 on the back of a new $7.5 million credit facility. This facility provides significant operational flexibility and, along with existing cash, will allow us to significantly grow our portfolio into 2020.

Our big goals for 2020 include more growth in local Canadian markets and greater expansion in the U.S. To meet these goals, we intend to work with our customers to introduce some innovative financing products to meet their needs. We also plan to continue to optimize our internal processes so we can deliver faster approvals and better answers to customers’ finance questions.

Industry Evolution in the 2020s

In the ever-changing world of SaaS, nothing stays the same for very long. As we enter the next decade, we’re certain that SaaS financing will continue to evolve, grow, and, hopefully, improve.

We predict that the 2020s will see a pullback of traditional venture capital models. 2019 saw the extinction of several heavily-funded unicorns which further drives home the point that funding alone does not equate to long-term success.

We expect to see a similar pullback by some of the technology lending models that have emerged. Building a customer-focused lending platform that also meets the needs of investors through returns and credit quality is a slow and deliberate business. Growth for growth’s sake will not provide the credit quality that investors demand.

In the next decade, we look forward to helping SaaS company entrepreneurs grow their businesses deliberately and sustainably with non-dilutive forms of growth capital, allowing them to “keep more of their companies” and earn a greater share of the eventual exit.

From left to right: Priyal, Mike, Natalie, Rob, Brooke, Mark, Greg, Andrew. Not pictured: Catherine, Darren.

Cheers to 2020.
Mike

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