Nondilutive financing alternatives startup Capchase raised $80M in a Series B growth equity funding 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 headquartered in New York, New York, Capchase has raised more than $400 million to date in a mix of both equity and debt. The company was founded by Ignacio Moreno, Luis Basagoiti, Miguel Fernandez, and Przemek Gotfryd, and strives to help recurring-revenue companies access future capital upfront.
In the first months of this year, Capchase expanded its services to the Netherlands, Belgium, Finland, Sweden, and Denmark, and launched its new European headquarters in London. Since launching, the startup has found over $2 billion in funding for close to 3,000 companies across the U.S. and Europe.
“In this economic environment, founders need new choices when it comes to deciding how to fund their businesses,” said CEO Fernandez in a press release. “It’s not a one-size-fits-all approach anymore and in just 18 months of operating, we’ve seen an incredible appetite for growth capital that’s flexible, fast and complementary to traditional funding methods like venture capital.”
He added that the company’s mission is to “automate everything that touches our customers’ finances,” and the fresh infusion of capital will help Capchase introduce additional products that free founders to “focus on what matters most: building and selling their product.”
An estimated 15% of the financing went to female and minority-led companies, Capchase said, considerably more than the typical distribution.
The startup recently released Capchase Extend — a buy now, pay later solution for businesses — and Capchase Earn, a high-yield account for companies’ idle funds. The company also created the proprietary data evaluation system CapScore™, which offers real-time analysis of a borrowers’ ability to repay.
“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 financing options, startups around the world will be able to access critical programmatic funding that is designed for the specific needs of their business and will fuel innovation in ways that haven’t existed before.”
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