The round was a mix of equity and debt and was led by QED Investors. Additional investors in the round include Bling Capital, SciFi VC, Caffeinated Capital, and several angels. Capchase has now raised nearly USD 190 million in a mix of debt and equity, according to Crunchbase data. The company launched its platform at the end of 2020 as an alternative to venture funding for founders — which can be expensive and dilute ownership stakes. It offers upfront capital to companies with recurring revenue. The loan is based on a company’s annual recurring revenue minus what is typically a 5 percent to 10 percent discount. An example would be a company with USD 10,000 in monthly recurring revenue; Capchase may pay out USD 108,000 for the total USD 120,000 ARR in return.
Since launching, Capchase has issued more than USD 390 million in financing to over 400 companies and expects to grow by 400 percent over the next six months (2021). Capchase plans to use the new funds to keep adding enhancement to its lending platform. Earlier in 2021, the company introduced a programmatic feature that ideally allows companies to receive the exact amount necessary to reach their goals based on their revenue growth and future plans. The company also plans to use the proceeds to expand operations across the ocean in the UK and Spain.
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