New York-based Capchase, a platform for recurring-revenue companies to secure non-dilutive capital, has raised over $400 million in additional debt financing.
The investment came from i80 Group (which backed RITMO) and an international banking group. They were joined by a dedicated roster of VC investors, including SciFi VC, QED Investors, Bling Capital, Caffeinated Capital and 01 Advisors.
How will it use funds?
Capchase will use the financing to provide funding to thousands of SaaS startups in the US and Europe. It will provide committed capital support for both current and future Capchase customers, and to diversify current product offerings.
In addition, Capchase will launch “Capchase Analytics”, which will provide founders with critical performance metrics, with users able to view information, including monthly recurring revenue, customer retention rate and burn rate in real time, helping them to make more informed financial decisions.
Miguel Fernandez, co-founder and CEO of Capchase said, “Customers who trust and use Capchase for their financing will now be able to better understand their business growth trends, forecast the future, make profitable decisions, and feel confident in timing their raises.”
Henrik Grim, MD of Capchase, said: “We have made extraordinary progress in Europe over a very short period of time. There is a huge amount of demand for alternative funding. This demand is only increasing as well run SaaS startups look for capital to continue to grow during these uncertain economic conditions.”
“Capchase has been an incredible partner and we would not be where we are today without them,” said Raad Ahmed, founder and CEO of Lawtrades. “With Capchase, we were able to unlock a significant amount of future revenue that we immediately put to use in growing the business. We grew at triple-digit rates last year and that has presented a once-in-a-lifetime opportunity for us, which would not have otherwise been possible.”
Founder-friendly financing solution
Founded in 2020 and headquartered in New York City by Ignacio Moreno Pubul, Luis Basagoiti, Miguel Fernandez, and Przemek Gotfryd. The company provides financing by bringing future expected cash flows to the present day, extending an immediate line of credit. Companies that work with Capchase are able to secure funding that is fast, flexible, and doesn’t dilute their ownership.
With Capchase Analytics, customers who provide their banking, accounting and subscription management data are presented with a dashboard that has up-to-date financial metrics. Within the dashboard, users can view their most important business information in real-time, including monthly recurring revenue, customer retention rate, and burn rate.
Capchase’s European business has grown tenfold since its debut and has expanded into the Nordics, Netherlands and Belgium and launched its European head office in London. Now, it is able to deploy more than $1 billion to SaaS companies in the next few years as startups look to extend their runway and avoid a down round in an uncertain market.