The company plans to use the funds to expand to the UK and Spain. Here are the top-line bullets you need to know.
Capchase, a company that provides access to non-dilutive capital, has raised $189.6M in a Series A funding round. The deal was a combination of debt and equity and drew participation from QED Investors, Bling Capital, Caffeinated Capital, and ScifiVC.
HOW’S THE COMPANY PERFORMING?
- Massachusetts-based Capchase helps firms acquire capital otherwise tied up in future recurring revenue. This enables companies to borrow capital without depleting cash reserves, acquiring debt, or giving up company equity.
- The company has also developed programmatic funding initiatives that allow funding to be distributed in increments to avoid paying interest on excess cash.
- Capchase states that customers save 16% on average in dilution and grow 53% faster.
- The company has more than 400 customers including Hubspot, Mainstreet, Gusto, Monday.com, and Negotiatus, among others. It says it has issued over $390M in financing.
WHY DOES THE MARKET MATTER?
- The global digital lending platform market is expected to grow at a CAGR of 16.7% and reach a value of $20.3B by 2027, according to Allied Market Research.
- The industry is being driven by financial institutions’ efforts to streamline their operations, reduce operating costs, and provide a more customized and enhanced service to their consumers.