Old Kent Road Financial provides investors and start-ups with opportunities through a new Canadian fund
Building on the past success of an investment by the VA Angels, Old Kent Road Financial (OKR) is a new technology and digital fund providing opportunities for investors and entrepreneurs. OKR Financial lends capital to companies that need growth capital long before their public sector commitments will be available to them.
In its first few months of operation, Old Kent Road Financial has raised $6 million in a first close of a targeted $20 million fund. The technology and media debt fund is a lending vehicle for Canadian startups that have access to federal government programs such as Scientific Research and Experimental Development Credits, the Digital Media Tax Credit, and others.
“We saw a need and we are happy how the fund has created a win for both investors who are getting quarterly yield, and the companies who get early access to capital they can’t get anywhere else,” said one of OKR’s Managing Partners, R. Stewart Thompson, who also runs one of the largest formal Angel Groups in Canada. “For our portfolio companies in VA Angels as well as other early stage ventures, we have been successful by adding a debt product so these entrepreneurs have the option of giving up equity or taking on high interest debt.”
The fund is set up as an RRSP/TFSA eligible investor vehicle, and will be seeking additional capital between now and December 31, 2016 to get to the targeted $20 million of capital under management.
Former EY Entrepreneur of the Year, and Managing Partner of OKR Financial, Jason Neale explains, “Old Kent Road is a mature version of what was initially a smaller fund, specifically Acheson Mobile Investments, where we did 26 loans like this with 100 percent debt return and an audited 41 percent IRR. We firmly believe we can get close to this with the OKR fund structure.”
Old Kent Road Financial has already provided capital to six companies since July 2016, with an additional 32 companies currently being reviewed.
“What makes us unique is that the fund is run by former entrepreneurs who understand the balance between risk for the investor and achievable milestones by the entrepreneur,” said Mr. Neale. “Our track record to date over nearly 40 investments proves we have the expertise for another successful venture.”
For more information on Old Kent Road Financial visit the website at http://www.okrfinancial.com/
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For an interview contact:
R. Stewart Thompson
Chairman and CEO
SMS 403 383 0106
The founders of OKR Financial believe that investors deserve low risk, high return opportunities. OKR is focused on financing companies that are applying for, or have been approved by the Canadian Government’s Scientific Research and Experimental Development Credits tax credit and/or grant program.
VA Angels is an investor only membership group committed to building Western Canadian industry through early stage angel investing.