Capchase Secures $80M Series B Funding to Automate Funding Process and Provide Non-Dilutive Capital to High-Growth Companies
NEW YORK, March 10, 2022 /PRNewswire/ — Cap-huntinga leader in providing non-dilutive capital for recurring revenue businesses operating in the United States and Europetoday announced a $80 million Series B investment, led by 01 Advisors. QED, Caffeinated Capital, Bling Capital, ScifiVC, Thomvest Ventures, Tusk Venture Partners, Invesco and Gaingels also participated in the round. The supplement $80 million in equity financing comes after a year of rapid growth and product expansion.
Founded in May 2020, Capchase helps high-growth, recurring revenue businesses achieve their top priorities: funding, growth, profitability, and increased margins. Capchase provides a platform for high-growth businesses to access and automate financing through cost-effective lending and financing tools. By automating all aspects of the fundraising process for companies, the company gives founders back time to focus on growing their business. Since its launch, Capchase has worked with nearly 3,000 businesses across the United States and Europeremake $2 billion in funding available to founders and by extending leads for more than 5,000 months. Each client has access to a dedicated growth advisor who helps optimize capital structure and drive growth efficiency.
Capchase estimates that nearly 15% of funding has gone to women and minority-led businesses – a significant increase from the limited funding these founders typically receive.
“In this economic environment, founders need new choices when it comes to deciding how to fund their businesses,” said Miguel Fernandez, co-founder and CEO of Capchase. “It’s no longer a one-size-fits-all approach and in just 18 months of operation, we’ve seen an incredible appetite for growth capital that’s flexible, fast and complementary to traditional funding methods like venture capital. Our mission is to automate anything related to our customers’ finances, and this new round of funding will help us launch additional products that allow founders to focus on what matters most: creating and selling their product.”
Since launching its first revenue financing product, Capchase Growthwhich provides recurring revenue businesses with upstream access to future capital, the company quickly launched two additional products: Extend the capchasea buy-it-now, pay-later solution for businesses, and Cap-hunting Earn, a high-yield account that pays a competitive return on companies’ idle cash (such as venture capital funds), further helping to lower their overall cost of capital. The company has also developed CapScore™, a proprietary system that evaluates hundreds of data points (such as subscription rates, growth, cash, etc.) and determines in near real time the ability to a business to repay a loan, now and in the future.
“The pace of innovation that Capchase has shown over the past two years is truly remarkable, and we believe their product suite is a game changer in the startup funding ecosystem,” noted Dick Costolo, Managing Partner and co-founder of 01 Advisors. “With more flexible funding options, startups around the world will be able to access essential programmatic funding designed for their specific business needs and will fuel innovation in ways that haven’t existed before.”
“Capchase has been an incredible partner and we wouldn’t be where we are today without them,” said Raad Ahmed, Founder and CEO of Lawtrades. “With Capchase Grow, we were able to unlock a significant amount of future revenue which we immediately used to grow the business. We experienced triple digit growth last year and this presented a unique opportunity for us, which would not have been possible otherwise.”
Over the past 18 months, Capchase has expanded to 10 markets, including seven European countries, and grown the company’s headcount to over 100 employees. The company plans to use its latest funding round to build momentum, expand its solutions beyond lending, and hire 100 additional employees by the end of the year.
To learn more about Capchase and apply for financing for your business, please visit www.capchase.com.
Capchase is a platform for recurring revenue businesses to secure non-dilutive capital. Founded in Boston, MA in 2020, the company provides financing by bringing expected future cash flows to the present day, thereby extending an immediate line of credit. Companies that work with Capchase are able to obtain financing that is fast, flexible, and does not dilute their ownership.
VP Marketing, Capchase