New York-based Capchase, a fintech company that provides financial solutions to startups in the United States and Europe, announced Thursday that it has raised $80 million (nearly 72.82 million euros) as part of of its Series B funding round.
The investment comes after a year of rapid growth and product expansion for the company. Capchase says it has made $2 billion available to founders, 25% of which has gone to European startups.
They are the female scientists of Amsterdam’s startup ecosystem.
In the first few months of 2022 alone, the US-based company expanded its services to the Netherlands, Belgium, Finland, Sweden and Denmark, and inaugurated its new European headquarters in London.
“Founder-Friendly Funding Solution”
Founded in 2020 by Ignacio Moreno, Luis Basagoiti, Miguel Fernandez and Przemek Gotfryd, Capchase helps SaaS companies fund the growth of their operations with cash tied up in future monthly payments. He says companies that work with them are able to secure financing without having to give up their equity.
Miguel Fernandez says, “In this economic environment, founders need new choices when it comes to deciding how to fund their businesses. It is no longer a one-size-fits-all approach. In just 18 months of operation, we have already seen a growing appetite for growth capital that is flexible, fast and complementary to traditional funding methods like venture capital. Our mission is to automate everything related to the finances of our customers.
Since its inception, the startup has worked with nearly 3,000 companies around the world, making more than $2 billion in funding available to founders and extending leads for more than 5,000 months. Capchase estimates that 15% of funding has been extended to women and minority-led businesses — a significant number compared to the limited funding these founders typically receive.
Caphunting of products
The company’s initial product, Capchase Grow, provides recurring revenue businesses with advance access to future capital. Capchase has now launched two additional products: Capchase Extend, a buy-it-now, pay-later solution for businesses; and Capchase Earn, a high-yield account that pays a competitive return on companies’ idle cash (such as venture capital funds), helping to further reduce 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 capacity of a business to repay a loan, now and in the future. the future.
Investors in this round
The investment was led by 01 Advisors, a US venture capital and advisory firm that helps founders move from creating a product to building a business. The company was founded in 2018 and is based in San Francisco, California.
The round also saw participation from QED, Caffeinated Capital, Bling Capital, ScifiVC, Thomvest Ventures, Tusk Venture Partners, Invesco and Gaingels.
01 Advisors co-founder Dick Costolo says, “We believe Capchase’s product suite is a game-changer in the startup funding ecosystem. 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.
Use of capital
Capchase reports that the funds will help the company launch additional products that will allow founders to focus on what matters most: building and selling their products.
Over the past 18 months, the company has expanded to 10 markets, including seven European countries, and grown its workforce to over 100 employees. With the capital raised, the company plans to build on this momentum, expand its solutions beyond lending, and hire 100 additional employees by the end of the year.
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