Lender for startups Capchase raises $80m

US lender for startups Capchase has closed an $80m Series B funding round as it looks to bolster its funding platform which offers founders financing without them having to give up equity or ownership. The Series B investment was led by 01 Advisors with funding also coming from QED, Caffeinated Capital, Bling Capital, ScifiVC, Thomvest Ventures, Tusk Venture Partners, Invesco and Gaingels. The funding announcement comes just weeks after Capchase picked London as its European headquarters, appointing ex-Silicon Valley Bank senior Alex McCracken as head of venture relationships in the London office.

Capchase provides financing for startups with recurring revenues – such as subscriptions – without requiring them to dilute their equity. The company says it aims to support greater diversity in the startup ecosystem, estimating that 15 per cent of the capital it has provided has been to underrepresented groups, such as female or minority-led startups; a statistic it claims sets it apart from venture capital companies. It says that by automating all aspects of the fundraising process for startups, Capchase gives founders time to focus on the growth of their startups. This year, Capchase has expanded to the Netherlands, Belgium, Finland, Sweden and Denmark.  It says that Europe now makes up 25 per cent of its business. Since its inception in May 2020, Capchase says it has worked with nearly 3,000 firms, making over $2bn in funding available to founders. Miguel Fernandez, co-founder and CEO of Capchase, said: “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.  “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.” 

In the past year, Capchase had added to its product offering to give founders more financing options including a buy now, pay later offering.

“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.