Capchase, a fintech firm located in New York that provides financial solutions to startups by providing them access to capital as they grow, had announced earlier this month that its services had been expanded to the Netherlands and Belgium.
This came after the company’s recent expansion into the Nordic region, which included hiring in Finland, Sweden, and Denmark.
Expansion plans
The company has now announced the opening of a new European headquarters in London. The announcement comes after a boom in demand for Capchase’s services, which has already seen more than $200M made available to UK entrepreneurs.
Alex McCracken is Capchase’s first significant hiring, and the company expects its London team to grow to 15 people in the next two months.
Capchase’s quick expansion across Europe will be aided by this move. It has now grown to the Netherlands, Belgium, Denmark, Sweden, and Finland in just two months. Since starting in the region in mid-2021, Capchase has served hundreds of organisations throughout Europe, accounting for 25% of the company’s revenue.
Capchase is a platform for recurring-revenue firms to acquire non-dilutive funding alternatives. It was founded in 2020 by Ignacio Moreno, Luis Basagoiti, Miguel Fernandez, and Przemek Gotfryd.
Business Model
The fintech startup raises money by bringing future predicted cash flows into the present day, effectively extending a line of credit. Companies that engage with Capchase claim to be able to acquire capital without having to give up stock.
Capchase Earn, one of the industry’s first solutions for businesses looking to monetize their idle funds, was recently launched by the company. The product generates a 1.5 percent annual percentage rate (APR) and allows businesses to lower their overall cost of capital. It allows startups to offset rates on Capchase’s other funding products with idle cash reserves from sources such as a recent fundraise.
Female and minority-led firms have received 15% of Capchase’s cash, according to the company. Female and minority-led firms, on the other hand, received only 2-3 percent of venture capital agreements in 2021.
Capchase invests in a variety of outstanding UK firms, including commercial and SMB SaaS, as well as consumer subscription businesses. Bankable, Craft Gin Club, and others are among the clients.
AlexMcCracken has been named Head of Venture Relationships and will be based in the new London office, where he will oversee Capchase’s engagement with venture capital companies and clients.
Alex comes to Capchase from Silicon Valley Bank, where he was the Managing Director for Corporate and Venture Relationships in Europe for more than a decade. Alex was one of the first employees of Silicon Valley Bank’s UK team, and was crucial in expanding the bank’s venture debt offering and presence in the UK and Ireland, gaining over 1,000 new technology clients and originating over £500 million in credit facilities.
Henrik Grim, MD of Europe at Capchase, said: “Expanding in the UK and appointing Alex is the latest in a series of major milestones for Capchase in an incredibly short period of time. Our new London HQ will give us an even greater presence right at the heart of Europe’s tech and financial industries.
“Alex’s considerable experience and network in the venture capital industry and as an entrepreneur will enable us to increase our footprint, provide a launchpad for further expansion, and enable more founders to grow faster without dilution.
“It is also worth noting that 15% of the funding we have made available has gone to founders from underrepresented groups. While there’s still much more work to be done, we’re delighted that this is significantly higher than the averages for VC deals. It shows that the Capchase model opens the door to many more founders to secure capital.”
Alex McCracken, Head of Venture Relationships at Capchase, said: “Being a former entrepreneur, VC and then a lender has given me experience on all sides of fundraising. Since Capchase is half the cost of venture debt and requires no security or warrants, I can see why demand for Capchase’s range of non-dilutive funding products is so high. I look forward to helping drive our growth even further in Europe.”
Across SMB and enterprise SaaS, as well as consumer subscription businesses, the company has previously contributed growth capital to a number of leading companies in these regions. Homerun (HR tech platform) and Owlin (news analytics) are only two of its clientele.
