Capchase, a Boston-headquartered SaaS and recurring revenue financing platform, today announced it raised $60M in additional funds. Founded in early 2020, Capchase established itself as an attractive alternative to dilutive venture capital and traditional venture debt for SaaS and recurring revenue companies. The new funds will be used to deliver larger advances to rapidly growing SaaS companies.
“We are excited to partner with i80 Group and leverage their expertise in scaling successful fintechs to further expand our phenomenal growth since launching in early 2020 as we gear up for a substantial Series A equity financing round in early 2021,” said Capchase CEO and Co-Founder Miguel Fernandez.
Founded by a team of former SaaS operators—Miguel Fernandez, Luis Basagoiti, Ignacio Moreno, and former VC Przemek Gotfryd—Capchase helps recurring-revenue companies unlock cash that is otherwise tied up in future subscription-based payments. Some SaaS founders prefer to reinvest the upfront capital in growth to achieve a flywheel effect. Others hold the cash on hand to extend their runway.
MORE CAPITAL, MORE GROWTH
Capchase has a significant impact on the businesses it finances. Founders who partner with Capchase delay equity raises by ~8 months, and raise capital on more favorable terms and in some cases turn their businesses cash flow positive overnight. Founders spare themselves on average ~16% in dilution, often avoid giving costly discounts to get paid upfront. Founders also appreciate Capchase’s friendly terms, speed-to-money and the flexibility of the service.
Capchase has so far disbursed tens of millions of dollars to fast-growing SaaS and recurring revenue businesses. With the new funds, Capchase plans to accompany founders on their growth journey for longer and with larger advances.
“The companies we work with access more capital as a result of their growth, they refer Capchase to fellow founders and they see this type of financing as critical for dilution-light rapid growth. The capital we’ve raised through i80 Group will enable us to rapidly grow the number of SaaS companies that we work with and ultimately establish our position as the leading provider of flexible and cost-effective alternative financing solutions to early- and growth-stage SaaS companies,” said Capchase COO and Co-Founder Przemek Gotfryd.
The financing is led by i80 Group, a leading specialty finance firm that is actively partnering with breakthrough fintech and proptech companies. The new asset-backed credit facility comes on the heels of unprecedented growth by the global SaaS industry, as businesses and consumers alike rapidly adopt cloud-based solutions.
“Capchase is addressing a critical need for SaaS companies with an innovative capital solution. i80 Group is excited to welcome Capchase as our latest portfolio company and we are excited to support its phenomenal growth trajectory” said Marc Helwani, Managing Partner at i80 Group.
Including Capchase, i80 Group will have made seven new investments since the start of the pandemic.
“The successful closing of this facility through a period of extreme financial and political uncertainty demonstrates continued institutional investor appetite to selectively fund strong originators of alternative credit assets using bespoke structures that mitigate risk appropriately” said Aishwarya Dahanukar, Head of Capital Markets at Capchase.