Capchase founders | Image credit: Capchase
New York-based Capchase, a fintech company that provides financial solutions to startups in the US and Europe, announced on Thursday that it has raised $400M (approximately €399.64M) in new debt financing. The new funding comes as the company says its European business grows tenfold.
The investment came from i80 Group, an investment firm designed to accelerate the innovation economy forward by empowering growth, and an international banking group.
Besides the funding, Capchase has also launched a new analytics tool to provide founders with critical performance metrics that will improve real-time financial decision-making.
Capital utilisation
Capchase says it will use the funds to provide thousands of SaaS startups in the US and Europe with funding. The company will support both current and future Capchase customers, as well as diversify its current product offerings.
Henrik Grim, MD of Capchase, says, “We have made extraordinary progress in Europe over a very short period of time. There is a huge amount of demand for alternative funding. This demand is only increasing as SaaS startups look for capital to continue to grow during these uncertain economic conditions.”
The company says that in less than a year, its European business has grown tenfold. Since the start of 2022, it has expanded into the Nordics, the Netherlands and Belgium, and launched its European head office in London. Capchase reports that it is now able to deploy more than $1B to SaaS companies in the next few years.
Capchase Analytics
Capchase also announced that it has expanded its platform with ‘Capchase Analytics’, a tool which helps SaaS founders make real-time financial decisions based on their business performance.
Customers who supply information about their subscription management, accounting, and banking are given access to a dashboard with real-time financial analytics. Users can also examine their crucial business data within the dashboard, such as monthly recurring revenue, client retention rate, and burn rate, in real-time.
Co-founder and CEO of Capchase, Miguel Fernandez, says, “A long-time goal of ours has been to provide access to holistic financial information from within the Capchase dashboard, and now Capchase Analytics allows founders to make more informed decisions on a convenient and intuitive platform. Customers who trust and use Capchase for their financing will now be able to better understand their business growth trends, forecast the future, make profitable decisions, and feel confident in timing their raises.”
Founder-friendly financing solution
Founded in 2020 by Ignacio Moreno, Luis Basagoiti, Miguel Fernandez, and Przemek Gotfryd, Capchase helps SaaS companies finance the growth of their operations with cash tied up in the future monthly payments. It claims that the companies that work with them are able to secure funding without having to give up equity.
Since its inception, the startup has worked with nearly 3,000 companies across the world, making over $2B in funding available to founders and extending runways by over 5,000 months. Capchase estimates that 15 per cent of funding has been extended to female and minority-led businesses – a significant number compared to the limited funding these founders typically receive.
The company’s initial product, Capchase Grow, enables recurring-revenue companies to access future capital upfront. Capchase has two additional products: Capchase Extend, a buy now pay later solution for businesses; and Capchase Earn, a high-yield account that pays a competitive return on companies’ idle cash (such as VC funds), helping to further reduce their overall cost of capital.
The firm also developed the CapScore, a proprietary system that evaluates hundreds of data points (such as subscription rates, growth, cash on hand, etc.) and determines a company’s ability to repay a loan, both now and in the future, in near real-time.
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