Capchase, a provider of non-dilutive capital to recurring income companies, has announced a $125 million Series A investment, led by QED Investors.
Additional investors in the round include early investors Bling Capital, ScifiVC and Caffeinated Capital, along with several Angels.
The new funding follows unprecedented growth since Capchase launched just eight months ago. Capchase has enabled more than 390 million dollars in financing and more than 400 companies already use their platform. The company expects to grow 400% in the next six months.
Capchase also announces its European expansion with its service now available to businesses in the UK and Spain. The offering has already seen a lot of traction in Europe, with companies like Whereby, Fiit.tv and [Futrli] counting on Capchase to fund their growth. Capchase hopes to launch its service in more European countries in the coming months.
Capchase helps businesses unlock cash that would otherwise be tied up in future recurring revenue payments. By bringing future revenue forward, companies can invest more in growth without depleting their cash reserves.
Miguel Fernández, Co-Founder and CEO of Capchase, comments: “We built Capchase to help technology companies access the capital they need to grow faster, without having to sell their company piecemeal. With our Series A financing, we will be able to continue to improve our core products and complement them with the new features that our customers have come to expect from us.”
In addition, Fernández points out, “future revenues represent a great opportunity when it comes to financing present growth. By recycling them, companies grow faster and do not need to rely on expensive rounds of capital.”
For his part, Henrik Grim, Managing Director Europe at Capchase, points out that Europe has been at the forefront of a lot of technological innovation, however, one area that still remains relatively untouched is how startups are financed. “We think our approach will be really attractive to European companies because it offers a new and flexible alternative to both equity rounds and other debt providers,” he explains.
“As the UK is Europe’s funding hub, as well as Europe’s largest market for recurring revenue businesses, it was a natural first choice for us to put up our flag. The UK will also provide us with an ideal entry point to expand.” quickly to other European countries,” he adds.
“We are delighted to be partnering with the Capchase team and very excited to help them build a great global business,” said Matt Burton, Partner at QED Investors. “Capchase is the fastest growing company I’ve seen come out of New York in the last decade, which says a lot about the value they add to their customers.”
The financing offered by Capchase allows technology companies to obtain the right amount of funds at the right time, which is a more efficient and affordable way to finance a recurring income business.
Most importantly, Capchase also offers a proprietary programmatic funding model that distributes just the right amount of funding needed for growth on a monthly or weekly basis, rather than providing the capital all at once, keeping the money in the bank with hardly any profit. On average, the growth rate increases by more than 50% when working with Capchase.
“At Whereby we have been fortunate to work with top-tier venture capital firms to finance our growth so far. With Capchase, we found an incredibly affordable and flexible financing solution that allows us to complement current funding sources and invest even more in growth. The entire process took a week, and we couldn’t be happier with Capchase,” adds Øyvind Reed, CEO of Whereby.The Spanish startup that succeeds in Silicon Valley