The funding will help Capchase launch new products and expand geographically. Here are the top-line bullets you need to know.
Capchase, a provider of non-dilutive financing, has raised $80M in a Series B. The round drew participation from 01 Advisors, Invesco, QED Investors, SciFi VC, Thomvest Ventures, and Tusk Ventures, 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 has provided over $2B in financing to nearly 3K customers across the US and Europe. The company’s business reportedly grew by 2,300% in 2021.
- The company recently launched 2 new products — Capchase Extend, a buy now, pay later (BNPL) solution for businesses, and Capchase Earn, a high-yield account for depositing idle funds.
- The startup is supported by a team of 106 employees located across 12 global cities.
- Capchase currently operates in 11 international markets across North America and Europe, including the US, the UK, Spain, the Netherlands, Finland, Belgium, Sweden, and Denmark. About 25% of its business is based in Europe.
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.
