Case Studies
TIMIA announces $3M investment into Karbon
Back to blog

TIMIA announces $3M investment into Karbon

Published on

Monique Morden
Monique Morden

VANCOUVER, BC – January 21, 2019 – TIMIA Capital announced a $3 million investment for San Francisco based, Karbon. Read the official press release.

Greg Smith, CIO, TIMIA Capital

“This is great opportunity for us to support a growing, capital efficient SaaS company,” said Greg Smith, CIO of TIMIA. “We’re here to invest in companies like Karbon to accelerate revenue growth with funding to increase their marketing and sales activities.”

Karbon is a B2B SaaS practice management platform for medium and large accounting firms. Karbon combines email, discussions, tasks and powerful workflows to keep everything a team needs to get work done in one place and in context.

“We felt TIMIA’s revenue-based financing was the best fit for our needs,” said Stuart McLeod, CEO of Karbon.“We like the flexibility of drawing on TIMIA’s capital in stages as we chart our growth towards annual recurring revenue (ARR) of $10 million.”

Stuart McLeod, CEO, Karbon

“When we looked at the capital requirements for 2019, and solid growth from 2018, dilutive capital is just not as attractive. Unless you’re in the running for tier one VC’s, or getting outlier type growth, there’s no reason to give up your company. So when the opportunity came up to work with TIMIA, It was an obvious choice for us. We’re looking at more than doubling our growth on the back of that capital.”

“The MRR lending market / SaaS debt market is nascent – there are a lot more players than 12-18 months ago. When you look around, some of the offerings aren’t that founder friendly as advertised. TIMIA has been around a while, with a good reputation. Working with TIMIA just made sense from the beginning.”

What is Revenue Financing?

TIMIA provides SaaS companies non-dilutive capital based on their MRR (Monthly Recurring Revenue). All entrepreneurs weigh the costs and constraints of both debt and equity. There’s never a clear winner. Equity has a high cost in terms of both dollars and ownership dilution, while debt, if available, restricts a company’s operational flexibility. Revenue Financing is a hybrid form that combines all the “pros” of both equity and debt. Learn more about Revenue Financing.

Back to top