Capchase, a New York-based provider of non-dilutive capital, has today announced a $125 million Series A investment, led by QED Investors. Additional investors in the round include early backers Bling Capital, ScifiVC and Caffeinated Capital, along with several operator angels. The new funding, which will be a mix of debt and equity, comes on the back of unprecedented growth since the firm launched just 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.”
Capchase was founded in 2020 and helps companies unlock cash that is otherwise tied up in future predictable revenue payments. By advancing future revenues, companies can invest more into growth without depleting their cash reserves. Also noted by Miguel Fernandez, “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.” Most common uses for the capital are customer acquisition, hiring top talent, acquiring other companies, consolidating liabilities, and working capital.
“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.”
“We had met multiple companies in the space, but we were by far most impressed by Capchase and what they had built,” said Camila Saruhashi, principal at QED Investors. “Their programmatic financing product is unique in the market, allowing companies to put their funding needs on autopilot and focus on growth. Tech companies that work with Capchase grow faster and Capchase channel partners increase revenue per user by more than 50 percent.”
The new just-in-time financing offered by Capchase enables tech companies to draw the right amount of funds at the right time, which is a more efficient and affordable way to fund a recurring revenue business. Importantly, Capchase also offers a proprietary programmatic funding model that is based on analytics and disperses just the financing required for growth on a monthly or weekly basis – as opposed to providing capital in one lump sum, which leads to cash sitting in a bank without generating returns.
On average, growth rate increases by more than 50 percent when working with Capchase and as of this month, the firm has already issued more than $390M in financing. Over 400 companies currently use its platform, and the company expects to grow by 400 percent over the next six months. As part of its growth plans, the company has announced it will also be expanding its operations in the UK and Spain.
“We began using Capchase at the end of last year when we were evaluating ways to grow quickly without giving up equity,” said Max Hellerstein, founder and CEO of Extra. “There was obvious alignment between us when we saw how easy Capchase made the onboarding process. They had a ton of confidence in our approach and built a custom funding model for us. We wouldn’t have been able to hit the milestones we had planned for without them. I highly recommend Capchase to any SaaS business that wants to be aggressive in their growth.”