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The financing will also help fund content licensing, acquisitions and other “general corporate purposes.” (The Logic)

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Talking point: The company will have about US$12.4 billion in long-term debt after this next round of financing as it continues to burn cash. It reported US$380 million in losses in its last quarterly report—up almost US$100 million from the same quarter a year earlier—and anticipates its burn rate to peak in 2019. The company noted in a recent letter to shareholders that investing in content production now will help temper losses starting next year. Netflix is doubling down on original content as it braces for competitors Apple and Disney to launch their own streaming services. Apple TV Plus, which launches next month, is almost half the price of Netflix’s cheapest subscription option and will stream original content exclusively. In its earnings call last week, Netflix product chief Greg Peters said the company also plans to crack down harder on password-sharing in a bid to glean revenue from users who are skirting its policies.

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The shared-space rental company is planning to raise US$3 billion to US$4 billion in the next few months, according to The Wall Street Journal’s sources, in a debt facility that could increase to US$10 billion in the coming years. It would be separate from any money raised through the firm’s planned IPO; it could also raise more money through the debt-financing agreement than the IPO itself. The company is looking to put the facility in place before its IPO later this year or early 2020. (Wall Street Journal)

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Talking point: The raise is part of WeWork’s plan to differentiate its future IPO from other disappointing public offerings this year from money-losing firms like Lyft and Uber. It’s also to make up for a failed investment from SoftBank, which was planned to be US$16 billion, but was cut to US$2 billion after a global fall in stocks and concerns from key investment partners that the firm was overvalued and losing money, as the deal would have given SoftBank a majority stake in WeWork. That reduction meant WeWork had to make new fundraising plans so it could keep expanding at its current pace. Expansion has been the main source of losses for the company, which made US$1.8 billion in revenue in 2018 but lost US$1.9 billion the same year.

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The fund has already invested 30 per cent of the money in five firms. It’s looking to expand to Toronto in early 2020, and to deploy the rest of the fund into North American-based growth-stage tech firms by the end of that year. (The Logic)

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Talking point: Vistara is looking to invest in 12 to 15 companies with debt financing, ranging from US$10 million to US$15 million, with the goal of helping firms grow longer before selling. Vistara has previously partnered with banks on debt financing, but it’s entering an increasingly crowded Toronto market, with big banks competing in smaller deals. Scotiabank, for example, is looking at tech deals as low as $1 million. Vistara has a strong track record, though, with a $100-million fund close in 2015, and investments and backing for this fund from Export Development Canada. The firm’s ambition isn’t limited to Toronto—it’s planning for that office to serve as a base for potential investments in Montreal, Ottawa, Waterloo and the U.S. East Coast.

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The office-rental firm may look for a valuation below the US$20 billion it was considering last week, which was already less than half of the US$47-billion private valuation it achieved earlier in 2019, according to multiple sources. Also on Monday, a WeWork executive said the company may shift its credit strategy toward junk bonds—a type of high-yield, high-risk security—a strategy for access to capital markets at favourable funding rates used by Netflix and many cable companies. (Wall Street Journal, Bloomberg)

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Talking point: This is the lowest potential valuation for WeWork yet. Skepticism around the company’s money-losing business model—it has yet to turn a profit in its nine years of existence—as well as its corporate governance have damaged the prospects for its public launch. WeWork needs regular capital infusions to sustain its rapid growth strategy; it signed a deal with JPMorgan Chase and Goldman Sachs to acquire US$6 billion of debt, but that deal is contingent on a successful public debut—the firm needs to raise at least US$3 billion in its IPO to get the money. The company is trying to secure more financing from SoftBank, one of its lead investors, to delay the IPO to 2020, but SoftBank has been wary of putting more money into WeWork, cutting a US$16-billion investment plan to US$2 billion earlier this year.

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Dirks’s departure comes four months after SVB received a licence to operate in Canada. She cited family health issues as reason for her departure. (Globe and Mail)

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Talking point: Dirks was the public face of the bank’s Canadian expansion. Her exit comes as the firm is facing growing competition from Canada’s Big Five banks. In April, CIBC provided Lightspeed with a US$55-million debt facility, replacing a line of credit SVB was previously providing to the company. Despite the competition, SVB maintains a strong reputation in Canada’s tech sector, with the bank gaining the top choice spot among The Logic subscribers in a survey of the best institutions for startup debt financing. With Dirks gone, Denis Nagasaki will be in charge of competing with the Big Five as the firm’s new principal officer in Canada. He’s been with the firm since September 2018, prior to which he worked at the Toronto-based management consultancy Optimus SBR.

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Vancouver-based Raven Indigenous Capital Partners will use the money to invest in companies working in four areas: media, tourism, cleantech and natural products. Raven is looking to make investments of between $250,000 to $1 million, and hopes to raise a total of $5 million for the fund by October. (Globe and Mail)

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Talking point: Raven, which is targeting six to eight per cent returns, bills itself as the first Indigenous investment fund of its kind. In April, Toronto-based Bridging Finance also launched a new fund, which it billed as the first Indigenous-focused fund to project eight per cent returns. Both firms’ claim to being first are reasonable, since Raven is a VC firm, and Bridging provides debt financing. The two will be competing for similar business, though, and they may not be the only ones in the space for long. There’s a pipeline of deals worth between $400 million and $500 million in this kind of ethical investing. And, the federal government is trying to draw more interest in the space via grants for Indigenous people looking to patent their intellectual property, and $100 million to help Indigenous-led small businesses attract more investments.