Boast.ai has secured a $100 million credit facility from New York’s Brevet Capital to launch an innovative financing platform enabling startups to receive cash advances on R&D tax credits and subsidies.
This new financing is in addition to the $30 million Series A Boast.ai announced in December.
Boast.ai’s flagship software product automates the complex process of applying for R&D tax credits. It gathers data from a company’s existing technical and financial systems to identify, categorize, and time-track eligible projects, ensuring nothing is missed and all the supporting documentation is in place, leading to larger refunds with less investment of time and resources.
Announcing the financing today, Boast.ai said the novel financing vehicle would simplify the R&D credit process and fuel innovation.
In Canada, the SR&ED program is the lifeblood of the innovation ecosystem, providing upwards of 60% cashback to small businesses investing in R&D.
This financing will enable Boast.ai to help startups recognize immediate cash benefits from R&D tax credits. Startups will be able to leverage their R&D refund eligibility to receive financing on a predictable monthly or quarterly basis, enabling them to grow their business without delay and without surrendering equity.
The breakthrough financing tool comes as startups increasingly look to alternative funding solutions to fuel their growth, particularly during the pandemic.
Boast.ai is uniquely positioned to support R&D-based financing, serving both as a unified system of record for R&D data and as a sophisticated financing platform enabling companies to leverage their R&D as an asset to fund their business without giving up equity and dealing with paperwork.