Accelerate Fund III invests in Chroma Technologies to empower Canadian renters
Calgary, AB, January 24, 2022 – Accelerate Fund III today announced its investment into Chroma, another fintech startup by former SkipTheDishes leaders, that reimagines the way Canadians rent their homes.
“Renters in Canada are dramatically underserved and under-banked. We see a huge opportunity to empower renters with simple financial products that make renting more affordable, flexible and rewarding,” says Myles Shedden, CEO and Co-Founder of Chroma. “With the rapid rise in property values across the country, the Canadian dream of homeownership seems further and further away for many – our mission is to make sure renters don’t get left behind.”
Research shows that 35 per cent of North Americans rent their homes and must pay their rent in full on the first of each month, even though salaries, student loan installments and other sources of income run on different schedules. Chroma’s flagship product, ChromaRent, is a convenient payment alternative where Chroma pays rent on behalf of renters on the 1st of the month, and renters can choose when and how they pay Chroma back throughout the month, with on-time payments also contributing to their credit score in the near future.
“It is estimated that roughly 50 per cent of Canadians live paycheque to paycheque and paying rent once a month on the first just doesn’t reflect the way people want to live these days,” says Shedden. “This cycle of living paycheque to paycheque and not building your credit means it’s extremely hard for renters to make meaningful progress without significant income growth, that’s the gap we want to fill.”
Chroma is working with respected industry leaders with aligned goals to make housing in Canada more affordable and accessible. One example is Immigration Services Calgary (Gateway) where newcomers are introduced to Chroma to help them get settled and succeed financially. With a record of 400,000 new Canadians arriving in Canada in 2021 alone, Chroma is well positioned to benefit this growing segment.
“We applaud Chroma’s innovation, which will be complementary to Gateway planning focused on newcomers and their dreams, goals, and priorities. Future newcomers will be onboarded more efficiently so we can unleash their economic, social, and civic potential sooner and help Canada’s post-pandemic recovery,” commented Hyder Hassan, CEO Immigrant Services Calgary.
“Chroma is an early-stage startup with an ambitious vision to serve Generation Rent and we’re excited to see how they grow,” commented Yasmine Al-Hussein, Investment Analyst, Accelerate Funds. “Chroma co-founders are familiar with operating lean and scaling fast. We’re glad the experienced team chose Alberta as headquarters and is well supported by local investors.”
The Chroma team will use proceeds from the Accelerate Fund III investment to continue to hire top talent here in Alberta and across the prairies.
Chroma’s mission is to empower renters with simple financial products that make their lives better. Chroma is a Canadian-based technology company founded in 2021. www.chroma.ca
About Accelerate Fund III
Accelerate Fund III is an early-stage angel co-investment fund in Alberta. We co-invest alongside angel investors in financing rounds and will typically invest up to $500,000 on the same terms and conditions as private investors. We work with formal angel groups, super-angels, family funds, and individual angel investors. Accelerate Fund III invests in private, early-stage Alberta companies in knowledge-based industries including: information and communications technology, energy technology, as well as life sciences, including agriculture and biotech. Accelerate Fund III is managed by Yaletown Partners with the support of The A100. Alberta Enterprise Corporation is Accelerate Fund III’s lead limited partner with support from other investors, including Opportunity Calgary Investment Fund. www.acceleratefund.ca
Accelerate Fund III
Claudia @ materialinsight.com