Capchase, a provider of non-dilutive capital for recurring-revenue companies, 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 angel investors.
The new funding comes on the back of unprecedented growth since Capchase launched eight months ago. Capchase has enabled more than $390M in financing and more than 400 companies already use its platform. The company expects to grow by 400 percent over the next six months.
The startups has also announced its European expansion with its service now available to businesses in the UK and Spain. The offering has already seen significant traction in Europe, with companies such as Whereby and Fiit.tv engaging Capchase to finance their growth. Capchase expects to launch in more European countries in the following months.
Capchase helps companies unlock cash that is otherwise tied up in future recurring revenue payments. By advancing future revenues, companies can invest more into growth without depleting their cash reserves.
Miguel Fernandez, co-Founder and CEO of Capchase, said: “We built Capchase to help tech companies access the capital they need to grow faster, without selling their company bit by bit. 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. “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.”
Henrik Grim, General Manager of Europe at Capchase, said: “Europe has been at the forefront of a huge amount of tech innovation, however, an area that remains relatively undisrupted is how startups are funded and financed. We believe our approach will really appeal to European businesses because it offers a new, flexible alternative to both equity rounds and other debt providers.”
The financing offered by the company enables other 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 disperses just the right amount of 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 companies work with Capchase.
“Whereby has been fortunate to work with world class VCs to finance our growth so far – with Capchase, we found an incredibly accessible and flexible financing solution, allowing us to complement current funding sources and invest even more into growth. The full process took a week end-to-end, and we couldn’t be happier with Capchase,” said Øyvind Reed, CEO at Whereby.