Non-dilutive funding alternatives startup Capchase has raised $80m in a Series B growth equity round led by 01 Advisors, with participation from previous backers QED, Caffeinated Capital, Bling Capital, ScifiVC, Thomvest Ventures, Tusk Venture Partners, Invesco and Gaingels.
Launched in May 2020 and based in New York, New York, Capchase has raised over $400 million to date in a combination of equity and debt. The company was founded by Ignacio Moreno, Luis Basagoiti, Miguel Fernandez and Przemek Gotfryd, and strives to help recurring revenue businesses access future capital from the start.
During the first months of this year, Capchase extended its services to the Netherlands, Belgium, Finland, Sweden and Denmark, and inaugurated its new European headquarters in London. Since its launch, the startup has found more than $2 billion in funding for nearly 3,000 companies in the United States and Europe.
“In this economic environment, founders need new choices when it comes to deciding how to fund their businesses,” CEO Fernandez said in a press release. “It is no longer a one-size-fits-all approach and in just 18 months of operation we have seen an incredible appetite for growth capital that is flexible, fast and complementary to traditional funding methods like venture capital.”
He added that the company’s mission is “to automate everything related to the finances of our customers”, and that the new capital injection will help Capchase introduce additional products that will allow the founders to “focus on what that matters most: building and selling their product”.
An estimated 15% of the funding went to businesses run by women and minorities, Capchase said, far more than the usual distribution.
The startup recently launched Capchase Extend – a buy-it-now, pay-later solution for businesses – and Capchase Earn, a high-yield account for idle corporate funds. The company also created the proprietary CapScore™ data scoring system, which provides real-time analysis of a borrower’s repayment capacity.
“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,” said 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.”
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