The Toronto company, which has $2 trillion of assets in Canadian dollars, announced its TD Innovation Partners platform on Tuesday. TDIP will provide banking, lending and wealth management services for Canada-based technology businesses at all stages of growth.
“While the TDIP team has the background and knowledge to service software and larger companies, we can also lend to earlier stage companies and are industry agnostic,” said Shez Samji, head of TD Innovation Partners, via email.
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“Our team understands the
The Toronto bank didn’t specify a timeline for opening a similar platform
“We are always thinking about the next phase of growth for TDIP,” said Samji in response.
Michael Miller, an equity analyst at Morningstar, notes that some of TD’s peers target startups and technology firms, such as the Toronto-based CIBC’s Innovation Banking division, which lends to firms at every stage of growth.
He identifies two main areas where banks can help this sector: flexible treasury solutions for capital that has been raised and the ability to expand the banking relationship as the business increases in scale.
“These clients could also benefit from a specialized team that is used to interacting with businesses that are likely cash flow negative, particularly when it comes to underwriting any kind of financing or liquidity solution,” he said via email.