Non-Dilutive Capital Company Capchase Closes $60 Million In Funding

By Dan Anderson ● January 19, 2021
  • Capchase — a Boston-based provider of non-dilutive capital for Software-as-a-Service (SaaS) companies — announced it has raised $60 million in additional funding

Capchase — a Boston-based provider of non-dilutive capital for Software-as-a-Service (SaaS) companies — announced it has raised $60 million in additional funding led by specialty finance firm i80 Group. Launched in early 2020, Capchase has quickly established itself as an alternative to dilutive venture capital and venture debt for recurring revenue companies. And the new funds will be used to expand the number of companies it can extend financing to, and the amount of revenue prepayment it provides.

Launched by a team of former SaaS operators — Miguel Fernandez, Luis Basagoiti, Ignacio Moreno, and former VC Przemek Gotfryd — Capchase helps recurring-revenue companies unlock cash that is otherwise tied up in future subscription-based payments. And this allows founders to either reinvest the upfront capital in profitable growth initiatives, or secure cash on hand to extend their runway.

Capchase has a significant impact on the businesses it finances. And founders who partner with Capchase delay equity raises by about eight months, raise capital on more favorable terms, and can become cash flow positive. As a result of working with Capchase, founders save 16% in dilution on average while avoiding costly discounts for upfront cash.

And this funding comes on the heels of a $4.6 million seed round announced in August of 2020. Since launching, Capchase has disbursed tens of millions of dollars to fast-growing businesses with recurring revenue.

KEY QUOTES:

“The capital we’ve raised through i80 Group will enable us to rapidly grow the number of startups that we work with and establish our position as the leading provider of alternative financing solutions for early- and growth-stage SaaS companies.” 

— Capchase co-founder and CEO, Miguel Fernández

“Capchase has created a phenomenal solution, and we are proud to welcome them into our growing portfolio. Securing non-dilutive capital is critical for startups and Capchase offers a meaningful alternative.”

— Marc Helwani, Managing Partner at i80 Group

“The successful closing of this financing during a period of extreme financial and political uncertainty demonstrates the appetite among institutional investors for alternative credit providers that mitigate risk appropriately.”

— Aishwarya Dahanukar, Head of Capital Markets at Capchase