Capchase is part of the ‘non-dilutive revolution’. We provide recurring revenue companies with access to fast, flexible and scalable non-dilutive growth capital. We do this by enabling them to leverage one of their biggest assets: the base of future revenues. Founders access it in the form of a revolving line of credit against their ARR, allowing them to tap into cash flow fully on-demand. Through our digital platform and use of AI, and our deep knowledge of startups, we are able to analyse business performance and assess eligibility quickly. As a result, we can get back with concrete proposals in just 24-48 hours so founders can spend more time on their business and less on pitching.
It is very transparent financing, with one flat fee, and no hidden costs or restrictions on the use of capital. Our mission is to provide simpler, easier and fully digital financial products for founders looking to avoid dilution.
In November, we also launched Capchase Earn, allowing founders to earn an ultra-competitive 3% return on existing funds they park with Capchase. When combined with other Capchase financing products, this is enabling startups to reduce their total cost of capital as they continue to grow. It is evidence of the fact that we are looking to expand our product suite to help founders make their capital work for them.
How did the founders come up with the idea for the company?
Capchase was established in 2020 by a founding team with a background in SaaS companies. They could see a gap between founder needs and market options, and recognised the benefits that innovative 21st century financing could offer for startups looking to scale up their businesses in what remained a fairly archaic field of finance.
Non-dilutive capital allows entrepreneurs to grow their business, while also maintaining control of their company and owning more at the point of a potential exit. Founders that use non-dilutive capital to grow their business can save potentially millions in dilution.
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How has the company evolved during the pandemic?
The company is only just over a year old so it actually began during the pandemic, but this has not prevented an extraordinary pace of growth. Capchase has made significant strides over the last year, becoming an established figure in the funding space, with really high customer uptake and interest, raising large funding rounds, and expanding into Europe.
Capchase’s early success meant that we were able to raise $280 million in July in new debt and equity funding, following a $125 million round in June, positioning us really well for growing our support of SaaS startups.
What can we hope to see from Capchase in the future?
We hope to become an even more established part of the funding eco-system in the coming months and years. We have high ambitions for continued growth and development, and are always listening to founders to learn about where the gaps in the funding system are, and the inefficiencies that can be solved, and are developing new products, such as Capchase Earn, that can help with these issues.