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CIBC Innovation Banking Announces $1.5 Billion Growth Capital Commitment

Techcrunch | Christine Hall | Jun 28, 2022

Growth equity - CIBC Innovation Banking Announces $1.5 Billion Growth Capital Commitment

Growth equity

At a time when U.S. venture dollars are slowing down, CIBC Innovation Banking is announcing $1.5 billion in growth capital commitments, dubbed “Unicorn Fuel,” to focus on later-stage companies across software, life sciences, healthcare and clean tech industries.

Venture capital firms raised funds over the past 2 years at what Mark McQueen, president and executive managing director at CIBC Innovation Banking, called an “unprecedented rate,” but as that has begun to recede, he says CIBC is in position to fill in with its nondilutive capital. The new fund will enable the bank to make deals ranging from $50 million to $100 million in capital.

See:  Osler Deal Points Report: Insights into Venture Capital Deals and Financings

“Our role is to help both the entrepreneur and their VC partners grow that business with incremental capital,” he told TechCrunch. “We don’t replace equity, but extend the runway. Our opportunity in good times is to allow VCs to sit on their dry powder while we use the bank’s capital to help grow their portfolio companies.”

Though valuation is “hard to put your finger on,” McQueen said, if CIBC can, it looks to extend the company’s capital runway by 18 months to 2 years.

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