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QED Investors will lead the Series A round to broaden the programmatic funding available to recurring revenue startups
FREMONT, CA: Capchase, a non-dilutive capital source based in New York, announced a 125 million dollars Series A funding led by QED Investors. Early investors Bling Capital, ScifiVC, and Caffeinated Capital, and other operator angels, participated in the round. The additional capital, which will be a combination of loan and equity, comes on the heels of its remarkable growth since its launch eight months ago. The extra money, which will be a combination of loan and equity, comes on the heels of its tremendous growth since its launch eight months ago.
"We built Capchase to help tech companies access the capital they need to grow faster, without selling their company bit by bit," noted Miguel Fernandez, co-founder, and CEO of Capchase. "With our Series A funding, we will be able to continue improving our core products and complement them with the new features that our customers expect from us."
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Capchase is a company that helps businesses liberate cash that is otherwise locked up in future predictable revenue payments. Companies need to invest more in growth despite depleting their cash reserves by forwarding future income. Miguel Fernandez also said, "future revenue presents a major opportunity when it comes to funding present growth. By recycling future funds, companies grow faster and do not need to rely on expensive equity rounds." Customer acquisition, recruiting top people, acquiring other businesses, consolidating liabilities, and working capital are the most prevalent uses for the funds.
"We are thrilled to partner with the Capchase team and excited to help them build a large, global business," said Matt Burton, partner at QED Investors. "Capchase is the fastest-growing company I've seen coming out of New York City in the last decade, which speaks volumes to the value proposition of turning your future ARR into growth capital in one click."
Capchase's innovative just-in-time financing allows tech companies to take out the right amount of money at the appropriate time, making it a more efficient and cost-effective way to fund a recurring income firm. However, Capchase also offers a distinctive programmatic funding approach based on analytics that disperses only the money necessary for growth weekly or monthly, rather than delivering capital in one lump sum, which results in cash sitting in a bank without earning profits.
When working with Capchase, growth rates improve more than 50 percent on average, and the company has since provided more than 390 million dollars in financing as of this month. Its platform is presently in use by over 400 organizations, and the company intends to increase 400 percent in the next six months. As part of its expansion goals, the company stated that it would extend its operations in the United Kingdom and Spain.
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