Capchase

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Funding announcement

Capchase raises $280M to scale its financing platform for subscription businesses

Capchase raises $280M to scale its financing platform for subscription businesses

Almost overnight, platforms that offer non-dilutive capital for recurring revenue businesses have become white-hot. It was only in March that Pipe — which aims to be the “Nasdaq for revenue” — raised $150 million, but two months later had raised $250 million at a $2 billion valuation. This fever is now reaching Europe, where today Capchase raises an additional $280 million in new debt and equity funding, led by i80 Group, following a $125 million round in June. But unlike Pipe, Capchase is playing both in the US and in Europe, where it has made €100m available to more than 50 companies in its first month of operation on the continent. Right now it’s live in the UK and Spain but expects to expand across Europe this year. The Spanish-American company is also now launching ‘Capchase Expense Financing’ to enable companies to manage their largest expenses – such as legal bills, cloud hosting services, payroll and bonus payments, and recruitment fees – without depleting their cash reserves, in either 3, 6, 9, or 12-month increments. Miguel Fernandez, co-founder, and CEO of Capchase said: “Our new expense financing solution is a first in the industry, and we believe it will be a game-changer. Since we launched just over a year ago, we’ve seen first-hand the challenges that companies face when securing the financing they need to grow their business. Managing large expenses and having to make difficult decisions over how they spend their cash is one of the most consistent and trying issues that our clients face. There’s also a great opportunity to reduce costs by making use of the upfront discounts that vendors provide. Now Capchase users can pay upfront with Capchase, get a discount, and pay Capchase monthly over the following months.” At interview Fernandez told me their main competitor is venture debt: “That is the one that we constantly keep winning against.” He said: “We’re not limited to just monthly or quarterly subscriptions, we can work with any revenue. We apply intelligence to it and work with customers. It’s not just the ability to pull forward revenues to find the growth, but also what is the implied schedule in order to achieve a business goal.” SOURCE TechCrunch

Funding announcement

Capchase Announces $60M In New Funding Led By i80 Group.

Capchase Announces $60M In New Funding Led By i80 Group.

Capchase, a Boston-based provider of non-dilutive capital for Software-as-a-Service (SaaS) companies, has today announced $60M in additional funding, led by specialty finance firm i80 Group. Founded in early 2020, Capchase has quickly established itself as an alternative to dilutive venture capital and venture debt for recurring revenue companies. The new funds will be used to expand the number of companies it can extend financing to, and the amount of revenue prepayment it provides. Founded by a team of former SaaS operators—Miguel Fernandez, Luis Basagoiti, Ignacio Moreno, and former VC Przemek Gotfryd—Capchase helps recurring-revenue companies unlock cash that is otherwise tied up in future subscription-based payments. This allows founders to either reinvest the upfront capital in profitable growth initiatives, or secure cash on hand to extend their runway. "The capital we've raised through i80 Group will enable us to rapidly grow the number of startups that we work with and establish our position as the leading provider of alternative financing solutions for early- and growth-stage SaaS companies," said Capchase co-founder and CEO, Miguel Fernández. Capchase has a significant impact on the businesses it finances. Founders who partner with Capchase delay equity raises by about eight months, raise capital on more favorable terms, and can become cash flow positive. As a result of working with Capchase, founders save 16% in dilution on average while avoiding costly discounts for upfront cash. "Capchase has created a phenomenal solution, and we are proud to welcome them into our growing portfolio," said Marc Helwani, Managing Partner at i80 Group. "Securing non-dilutive capital is critical for startups and Capchase offers a meaningful alternative." This funding comes on the heels of a $4.6M seed round, announced in August of 2020. Since its inception, Capchase has disbursed tens of millions of dollars to fast-growing businesses with recurring revenue. "The successful closing of this financing during a period of extreme financial and political uncertainty demonstrates the appetite among institutional investors for alternative credit providers that mitigate risk appropriately," said Aishwarya Dahanukar, Head of Capital Markets at Capchase. To learn more about Capchase, visit www.capchase.com. To learn more about i80 Group, visit www.i80group.com. About Capchase Capchase is a platform for recurring-revenue companies to secure non-dilutive capital. It provides financing by bringing future expected cash flows to the present day – thereby extending an immediate line of credit. It was founded in 2020 in Boston, MA. About i80 Group i80 Group is a specialty finance firm providing capital and support to breakthrough fintech, proptech and other innovative companies. We provide creative and flexible asset-based facilities used to fund origination of loans and other collateral, and design bespoke solutions specific to the unique needs of our partners. The company is headquartered in New York with offices in San Francisco.

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