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Fremont, CA: Capchase, a leader in non-dilutive capital for recurring-revenue firms in the United States and Europe, raised $80 million in series B round of financing headed by 01 Advisors.
Capchase, a high-growth, recurring-revenue company founded in May 2020, assists high-growth, recurring-revenue companies in achieving their main priorities: funding, growing, reaching profitability, and expanding margins. Capchase is a platform that enables high-growth businesses to access and automate finance through a low-cost loan and financing solutions. By automating every step of the fundraising process for businesses, the company frees up time for founders to focus on the company's growth.
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"In this economic context, innovators require fresh options when determining how to fund their enterprises," stated Miguel Fernandez, Capchase's co-founder, and CEO. "It's no longer a one-size-fits-all approach, and we've seen an incredible appetite for growth capital that's flexible, fast, and complementary to traditional funding methods like venture capital in just 18 months of operation. Our objective is to automate everything that has an impact on our customers' money, and this new round of funding will enable us to develop new solutions that will allow entrepreneurs to focus on what matters most: building and selling their product."
Since launching its first revenue-financing product, Capchase Grow, which allows recurring-revenue businesses to access future capital upfront, the company has quickly added two more products: Capchase Extend, a buy now, pay later solution for businesses, and Capchase Earn, a high-yield account that pays a competitive return on companies' idle cash (such as VC funds), helping to lower their overall cost of capital. The company also created the CapScoreTM, a proprietary algorithm that analyses hundreds of data points (such as subscription rates, growth, cash on hand, and so on) and determines a company's ability to repay a loan in near real-time now and in the future.
"Capchase has demonstrated extraordinary innovation over the last two years, and we believe their product suite is a game-changer in the startup funding environment," said Dick Costolo, Managing Partner and co-founder of 01 Advisors. "With more flexible financing alternatives, companies all across the world will be able to obtain vital programmatic finance tailored to their individual business needs, fueling innovation in ways that have never been seen before."
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