Showcasing the Advantages of SR&ED Tax Credit Financing with Easly

When it comes to venture capital, nurturing innovative startups is essential. Nimbus Synergies, a Vancouver-based venture capital firm specializing in the health technology ecosystem, understands the value of innovation. For companies that invest heavily in research endeavours, maximizing government incentives like the Scientific Research and Experimental Development (SR&ED) tax credit program can make all the difference. Nimbus Synergies recognized the immense potential of SR&ED tax credits, but there was a challenge: the lengthy gap between incurring costs and receiving refunds. This is where Easly stepped in, offering a solution that transformed how Nimbus Synergies’ portfolio companies leveraged SR&ED credits.

No stranger to innovation, Nimbus backs early stage startups from seed to series B. Some of Nimbus’ portfolio companies include AI skin cancer detection tool MetaOptima and Arbutus Medical, which converts power tools into sterile surgical drills.

Continue reading to learn more about how Easly assisted Nimbus Synergies and how our SR&ED financing may be able to help your company, too.

The Challenge: Bridging the Cash Flow Gap

The SR&ED program is known for its generous financial support (over $3 billion in tax credits to over 20,000 claimants annually), providing substantial benefits for companies engaged in research and development (R&D) activities. However, there is one significant hurdle related to this program: the waiting period. SR&ED refunds are disbursed annually, which means there’s often a long delay between when eligible costs are incurred and when the much-needed funds arrive in the claimant’s bank account. This gap in funding results in lumpy cash flow.

For the healthtech-focused companies in Nimbus Synergies’ portfolio, this problem is exacerbated by the high R&D costs and long go-to-market timelines before substantial revenues are generated inherent in the space. The need for ongoing access to working capital is critical.

The Solution? Easly Advances.

Nimbus Synergies recognized the need for a solution to effectively bridge this cash flow gap. The solution? Easly Advances.

Easly Advances are an innovative SR&ED financing solution. Using them, companies are able to leverage their accrued SR&ED credits to access their refunds in-year rather than waiting for the annual disbursement. With Easly, Nimbus Synergies’ portfolio companies were able to transform their distant lump-sum SR&ED refunds into non-dilutive cash they could utilize throughout the year. This newfound control over their funding timeline was invaluable.

The Power of SR&ED Financing

So, what exactly is SR&ED financing, and how does it work? SR&ED credits accrue year-round as a company spends on eligible expenditures related to R&D activities. However, the SR&ED program requires companies to wait for an annual disbursement, leaving them with long cash flow gaps.

Fortunately, Easly’s SR&ED financing provides a more streamlined solution by allowing companies to tap into their earned SR&ED credits to date, providing them with cash they can access year-round. This means companies can transform how they manage their finances and ensure they have the cash flow required for ongoing operations and investments.

Key Takeaways: Maximizing SR&ED Credits with Easly

The success of Nimbus Synergies and its collaboration with Easly highlights the transformational power of our SR&ED tax credit financing. To summarize, here are three advantages of Easly Advances as highlighted through our work with Nimbus Synergies:

1. Eliminating Cash Flow Hurdles: With Easly Advances, companies can access their SR&ED credits in-year, eliminating the lengthy waiting period.
2. Founder-Friendly Funding: SR&ED financing is non-dilutive and founder-friendly, providing a valuable source of capital to extend a company’s runway.
3. Control Over Funding Timeline: Easly’s solution allows companies to manage their funding timeline effectively, ensuring they have the cash they need when needed.

Ready to Get Started with Easly?

Waiting for annual Scientific Research and Experimental Development refunds can be a significant challenge for companies engaged in research and development activities. Easly offers a solution that eliminates cash flow hurdles, provides founder-friendly funding, and empowers companies to take control of their funding timeline. Easly ensures that innovative startups and established enterprises have the financial resources they need to thrive and make a lasting impact in their respective industries.

Find out your estimated cash flow potential to discover the value of the Easly Advances you could receive.

Or contact Easly today to discover how you can quickly access your SR&ED credits with ease and confidence.