Capchase, a New-York based non-dilutive capital provided that helps tech companies access capital without selling company shares, raised $125 million in a funding round led by QED Investors according to a press release.
The company plans to use the funding, a mix of debt and equity, to improve its core products and continue its growth since launching eight months ago.
The company’s Co-founder and CEO Miguel Fernandez Larrea says, “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.”
Existing investors Bling Capital, ScifiVC and Caffeinated Capital previously led a $4.6 million seed round and joined several angel investors in assisting this funding round. i80 Group also invested $60 million in Capchase in a January debt financing round.
Capchase funds up to 12 months of future monthly recurring revenue (MRR), and claims that it can increase growth rate for other companies by more than 50% on average.
Meanwhile, Capchase itself expects to grow by 400% over the next six months and plans to expand operations to the UK and Spain by the end of the year.
Capchase claims it helps companies with cash flow that is tied up in future predictable revenue payments, advancing future revenues and enabling clients to invest into growth without depleting cash reserves. The press release states that Capchase’s “just-in-time” financing helps companies to withdraw the right amounts of funds at the right times, using an analytics-driven proprietary programmatic funding model that disperses payments on a monthly or weekly basis.
This method contrasts lump sum payments because it allows the money to generate returns while it isn’t being used. The majority of their clients use the capital for working capital, customer acquisition, team growth, company acquisition and liability consolidation.
Capchase was founded in 2020 by Miguel Fernandez, Luis Basagoiti Marqués, Przemek Gotfryd, and Ignacio Moreno Pubul. The company has already offered $390 million to tech founders and has a team of 40. Capchase’s website states its founders have experience handling venture debt and the challenges that come with financing through their own experience of scaling SaaS platforms from pre-revenue to millions in annual recurring revenue.
In other recent fintech news, Canadian fintech Trulioo, an identity verification company, has secured $394 million in a Series D funding round that has bumped up its valuation to $1.75 billion, according to a press release.