RBCx Launches a New Debt Venture Offering to Meet Market Demand

RBCx, Royal Bank of Canada’s technology banking platform, announced the launch of its venture debt offering, which provides capital to early-stage start-ups at the Series A or pre-revenue stage. This move enables RBC, traditionally a late-stage lender, to offer financing across all phases of a company’s growth. 

The launch followed an increase in venture debt investment in Canada during the first half of 2021. According to the Canadian Venture Capital Association (CVCA), there was a total of $292 million in venture debt invested in 34 deals across Canada; 15 of these deals took place in Ontario. 

Venture debt is a type of debt financing provided to venture-backed start-ups which provides companies with the financing they need to grow without diluting the equity stake of the start-ups’ existing investors. 

The Toronto-based platform, RBCx, officially launched in mid-June 2021. It offers a suite of advisory and financial products and provides oversight for the delivery of all banking products and services to tech and innovation companies for RBC. The announcement of its venture debt offerings expands the suite of RBCx’s product portfolio which includes, SaaS financing, GP loans, and a capital call line offering. 

Author: Rebecca Ro, 2021/2022 Articling Student-at-law