Capchase plans to use the financing to meet the growing demand for alternative funding. Here are the top-line bullets you need to know.
Capchase, a revenue-based financing platform for SaaS companies, has raised $400M in debt from i80 Group, among others.
HOW’S THE COMPANY PERFORMING?
- New York-based Capchase helps firms transform recurring revenue into growth financing. This enables companies to borrow capital without depleting cash reserves, acquiring debt, or giving up company equity.
- The company states that it will be able to provide $1B in capital to SaaS startups over the next few years.
- The company opened its European headquarters in London earlier this year. It states that its European business has grown 10x over the past year.
Source: Capchase
WHY DOES THE MARKET MATTER?
- The global revenue-based financing market is expected to reach a value of $42.4B by 2027, growing at a CAGR of 61.8%, according to Allied Market Research.
- Startups are looking to obtain growth capital more quickly, which has contributed to growth in this market.
- Companies increasingly turned to alternative financing options amid pandemic-induced financial downturn.
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