A Canadian artificial intelligence company has secured a $100 million credit facility to launch an innovative financing platform that will enable startups to receive cash advances on research and development (R&D) tax credits and subsidies.
Boast.ai, a Vancouver-based company that uses AI to help companies get larger returns without manual work and audit risk, says the new credit will enable the company to help startups recognize “immediate cash benefits from R&D tax credits, which now exceed $15 billion a year between the US and Canada.”
Startups will be able to leverage their R&D refund eligibility to receive financing on a monthly or quarterly basis, according to Boast.ai, enabling companies to grow their business without delay and without surrendering equity.
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Boast.ai has helped more than 1,000 innovative companies to recover R&D costs from the US and Canadian government, streamlining the process and reducing the risk of costly audits.
The company’s R&D tax credit software gathers data from a company’s existing technical and financial systems to identify, categorize, and time-track eligible projects. Boast.ai says it ensures “nothing is missed and all the supporting documentation is in place, leading to larger refunds with less investment of time and resources.”
“R&D is the engine of the modern economy, and innovative companies should be able to access the tax credits they’re entitled to,” says Co-founder and CEO Alex Popa.
“We’ve spent almost a decade honing our craft to help customers get more money, faster and with less risk, compared to any other solution in the market. We empower companies from startups to large enterprises to quantify the value of their R&D efforts, then leverage that asset through a successful R&D tax credit application which allows them to grow their business without unnecessary outside capital.”
Boast.ai says their financing tool comes as startups increasingly look to “alternative funding solutions” to help fuel their growth, especially during the COVID-19 pandemic.
The company says it is “uniquely positioned” to support R&D-based financing while serving as a unified system of record for R&D data and as a sophisticated financing platform enabling companies to leverage their research and development as an asset to fund their business, without having to give up equity and dealing with paperwork.