New breed of investment firm addresses problematic lack of financing available to innovative Canadian startups
VANCOUVER, CANADA – With disruptive ideas and technologies needed more than ever before, Shred Capital (Shred) is launching to provide venture financing solutions to early-stage companies focused on revitalizing the industries that have been hardest hit by the COVID-19 pandemic.
“The best startups aren’t the bandwagon companies you see popping up during boom times,” said Shred Co-founder Matt Toner, the Biba Ventures CEO who has launched half a dozen startups in New York, Toronto and Vancouver. “We believe the best ideas are those that address a real pain point, and we sure are seeing a lot of those right now. Post-pandemic, we need disruptive ideas to reinvent theatre, travel, restaurants, concerts, conferences, education, you name it. But those ideas aren’t going to get off the launch pad without early-stage investors willing to share the risk.”
As a new breed of investment firm that shares the energy, passion and tenacity of its clients, Shred deeply values (and enjoys) getting to know and understand the people, vision, technologies and management styles underpinning innovative businesses. At the same time, Shred helps startups navigate and fund claim preparations for SR&ED, IDMTC and other tax credit programs, as well as proposals for the Canada Media Fund, BSP or IRAP. The extra diligence delivered by this unique layered approach allows Shred to structure the best equity investments for its clients, while providing financing that lets startups focus on building momentum and value right away.
“Our competitors will typically make an investment decision based on a slick pitch deck and a short meeting with a startup’s founders, but that’s not how we roll,” said Shread’s other Co-founder, Yechiel Kopelowitz, who also serves as Managing Director of Leonite Capital, a New York-based investment firm that has partnered with Shred to establish a presence in Western Canada. “Many early-stage equity funders are looking for the next so-called ‘unicorn,’ but at Shred, we’re more about rhinos – game-changing businesses that are robust enough to survive and thrive for the long haul.”
Shred is also working to overcome a problematic lack of earliest-stage financing in the Canadian startup ecosystem, which shows tremendous promise owing to factors ranging from robust government support and a dynamic business environment to world-class talent and training.
“We are looking for committed founders who have the team and the technology to unleash an idea that can change the world,” Kopelowitz said. “And if it takes years to affect that change, so be it. We have the expertise, experience, passion and resources to make that change a reality.”
About Shred Capital
Based in downtown Vancouver, Shred provides funding opportunities to early-stage Canadian companies across a range of innovative sectors. Shred’s offices in New York and Tel Aviv enable it to access an investor network that spans the globe.