NEW YORK, June 4, 2021 / PRNewswire / – Capchase, a new Yorkprovider of non-dilutive capital, today announced a $ 125 million Series A investment, led by QED Investors. Additional investors in the cycle include early backers Bling Capital, ScifiVC and Caffeinated Capital, as well as several angel investors. The new financing, which will be a mix of debt and equity, is part of unprecedented growth since the company launched just eight months ago.
“We built Capchase to help technology companies access the capital they need to grow faster, without selling their business bit by bit,” noted Miguel Fernandez, co-founder and CEO of Capchase. “With our Series A funding, we will be able to continue to improve our core products and complement them with the new features our customers expect from us.”
Capchase was founded in 2020 and helps businesses unlock cash that would otherwise be tied up in predictable future revenue payments. By advancing future earnings, companies can invest more in growth without depleting their cash reserves. Also noted by Miguel Fernandez, “Future revenues present a major opportunity when it comes to financing current growth. By recycling future funds, businesses grow faster and don’t need to depend on costly fundraising ”. The most common uses of capital are acquiring clients, hiring top talent, acquiring other companies, consolidating debt, and working capital.
“We are delighted to partner with the Capchase team and delighted to help them build a great global company,” said Matt Burton, partner at QED Investors. “Capchase is the fastest growing company I have seen come out of New York City over the past decade, which says a lot about the value proposition of turning your future ARR into growth capital with the click of a button. “
“We had met several companies in the space, but we were by far the most impressed with Capchase and what they had built,” said Camila Saruhashi, director of QED Investors. “Their programmatic financing product is unique in the market, allowing companies to put their financing needs on autopilot and focus on growth. Tech companies that work with Capchase are growing faster, and Capchase channel partners are increasing revenue per user by over 50%. “
The new just-in-time financing offered by Capchase allows tech companies to pull the right amount of funds at the right time, which is a more efficient and affordable way to fund a recurring revenue business. Importantly, Capchase also offers a proprietary, analytics-based programmatic funding model that only allocates funding needed for growth on a monthly or weekly basis, instead of providing capital in a single installment, which leads to cash deposited in a bank without generating a Return.
On average, the growth rate increases by over 50 percent when working with Capchase and as of this month the company has already issued over $ 390 million in financing. More than 400 companies are currently using its platform and the company expects 400% growth over the next six months. As part of its growth plans, the company announced that it will also expand its operations to the UK and Spain.
“We started using Capchase at the end of last year when we were evaluating ways to grow quickly without giving up equity,” said Max Hellerstein, founder and CEO of Additional. “There was a clear alignment between us when we saw how much Capchase made the onboarding process easier. They had great confidence in our approach and built a personalized fundraising model for us. We could not have achieved the milestones we had planned. without them. I highly recommend Capchase to any SaaS business that wants to be aggressive in its growth. “
To learn more about Capchase and apply for programmatic funding for your business, please visit www.capchase.com.
Capchase is a platform for recurring income companies to secure non-dilutive capital. Founded in Boston, Massachusetts in 2020, the company provides funding by reducing expected future cash flows to the present day, thereby extending an immediate line of credit. Companies that work with Capchase are able to obtain financing that is fast, flexible and does not dilute their ownership.
About QED Investors
QED Investors is a leading global venture capital firm based in Alexandria, Virginia. Founded by Nigel morris and Frank rotman in 2007, QED Investors focused on investing in early stage and disruptive financial services companies in the US, UK, Latin America and South East Asia. QED Investors is dedicated to building great businesses and employs a unique hands-on approach that draws on decades of entrepreneurial and operational experience from its partners, helping their businesses achieve breakthrough growth. Notable investments include Credit Karma, ClearScore, Nubank, SoFi, Avant, Remitly, GreenSky, Klarna, QuintoAndar, Loft, Konfio, Creditas, AvidXchange, Current and Mission Lane.
RJ Walker & Co.