Capchase Acquires $80M via Series B to Automate Financing

Capchase, a firm offering non-dilutive capital for recurring-revenue businesses operating in the US and Europe, announced an $80 M Series B round which has been led by 01 Advisors.

QED, Caffeinated Capital, Bling Capital, ScifiVC, Thomvest Ventures, Tusk Venture Partners, Invesco and Gaingels also contributed to the investment round.

The additional $80M in funding “comes after a year of rapid growth and product expansion.”

This year, Capchase has “expanded to the Netherlands, Belgium, Finland, Sweden and Denmark, and launched its new European headquarters in London.” Since it was established in May 2020, Capchase has “worked with nearly 3,000 companies across the world, making over $2 billion in funding available to founders and extending runways by over 5,000 months.” Europe now “represents 25% of its business.”

Capchase helps high-growth, recurring-revenue businesses “achieve their top priorities:
financing, growing, reaching profitability and expanding margins.” Capchase offers a platform for high-growth companies “to access and automate financing via cost effective lending and financing tools.”

By automating all aspects of the fundraising process for businesses, the company “gives founders time back to focus on the growth of their company.” Capchase “estimates that 15% of financing has been extended to female and minority-led businesses – a significant increase compared to the limited funding these founders typically receive.”

Miguel Fernandez, Co-founder and CEO of Capchase, stated:

“In this economic environment, founders need new choices when it comes to deciding how to fund their businesses. It’s not a one-size-fits-all approach anymore and in just 18 months of operating, we’ve already seen an increasing appetite for growth capital that’s flexible, fast, and complimentary to traditional funding methods like venture capital.”

Fernandez added:

“Our mission is to automate everything that touches our customers’ finances, and this new round of funding will help us to launch additional products that enable founders to focus on what matters most: building and selling their product.”

Since launching its initial revenue-financing product, Capchase Grow, which enables recurring-revenue companies to access future capital upfront, the company has “quickly launched two additional products” such as:

  • Capchase Extend, a buy now pay later solution for businesses, and
  • Capchase Earn, a high-yield account that “pays a competitive return on companies’
    idle cash (such as VC funds), helping to further reduce their overall cost of capital.” The firm also developed the CapScore™, a proprietary system that “evaluates hundreds of data points (such as subscription rates, growth, cash on hand, etc.) and determines
    in near real-time a company’s ability to repay a loan, both now and in the future.”

Dick Costolo, Managing Partner and co-founder of 01 Advisors, noted:

“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. 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.”

Raad Ahmed, Founder & CEO of Lawtrades, remarked:

“Capchase has been an incredible partner and we would not be where we are today without them. With Capchase Grow, we were able to unlock a significant amount of future revenue that we immediately put to use in growing the business. We grew at triple-digit rates last year and that has presented a once-in-a-lifetime opportunity for us, which would not have otherwise been possible.”

During the past 18 months, Capchase has reportedly “expanded to 10 markets, including seven European countries, and has increased company headcount to over 100 employees.”

The company plans to use its latest funding round to “continue its momentum, expand its solutions beyond lending and hire an additional 100 employees by the end of the year.”

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