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Image credit: Capchase

Capchase, a New York-based fintech firm that provides non-dilutive capital for recurring-revenue companies, announced on Wednesday that it has picked London as its new European headquarters (HQ). 

The announcement comes after a surge in demand for Capchase’s services as it made $200M available to UK startups in six months. The move will help Capchase consolidate its position across Europe. 

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The company provides growth capital to a range of leading businesses in the UK, across enterprise and SMB SaaS, as well as consumer subscription businesses. Clients include companies like Bankable, Calipsa, Craft Gin Club, and more. 

Henrik Grim, MD of Europe at Capchase, says, “Expanding in the UK and appointing Alex is the latest in a series of major milestones for Capchase in an incredibly short period of time. Our new London HQ will give us an even greater presence right at the heart of Europe’s tech and financial industries.”

Capchase expanded its operation to the Netherlands and Belgium earlier this month, and to the Nordic region (Denmark, Sweden, and Finland) in January. 

Alex McCracken appointed Head of Venture Relationships

The US lending company made its first hire and appointed Alex McCracken as Head of Venture Relationships. He will lead Capchase’s relationship with venture capital firms and clients from the new London office. 

Grim says, “Alex’s considerable experience and network in the venture capital industry and as an entrepreneur will enable us to increase our footprint, provide a launchpad for further expansion, and enable more founders to grow faster without dilution.” 

Alex joins Capchase from Silicon Valley Bank, where he spent over a decade as Managing Director for Corporate and Venture Relationships in Europe. Prior to this, Alex was Investment Manager at TTP Ventures. Earlier in his career, Alex co-founded TISS Ltd which developed and sold fuel efficiency systems for road haulage vehicles.

Capchase expects to grow its London team to 15 employees in the next two months. 

McCracken says, “Being a former entrepreneur, VC and then a lender has given me experience on all sides of fundraising. Since Capchase is half the cost of venture debt and requires no security or warrants, I can see why the demand for Capchase’s range of non-dilutive funding products is so high. I look forward to helping drive our growth even further in Europe.”

Capchase: What you need to know

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 future monthly payments.

Capchase claims to have witnessed strong growth in 2021 and provided about $1.6B in funds to entrepreneurs throughout the year. Currently, the European market alone accounts for 25 per cent of Capchase’s business.

Capchase estimates that 15 per cent of the capital it has provided has been to female and minority-led startups. In contrast, only 2-3 per cent of venture capital deals struck in 2021 went to female and minority-led startups. 

Grim adds, “It is also worth noting that 15% of the funding we have made available has gone to founders from underrepresented groups. While there’s still much more work to be done, we’re delighted that this is significantly higher than the averages for VC deals. It shows that the Capchase model opens the door to many more founders to secure capital.”