Growth financing platform Capchase raises $80m Series B funding

Recurring-revenue business lender Capchase has landed an $80 million Series B investment round.

The funding round was led by 01 Advisors and saw participation from QED, Caffeinated Capital, Bling Capital, ScifiVC, Thomvest Ventures, Tusk Venture Partners, Invesco and Gaingels.

Capchase CEO Miguel Fernandez says funding businesses in the current economic environment “is not a one-size-fits-all approach anymore”.

“In just 18 months of operating, we’ve already seen an increasing appetite for growth capital that’s flexible, fast, and complimentary to traditional funding methods like venture capital,” Fernandez adds.

The New York-based company helps high-growth, recurring-revenue businesses get financed and reach profitability through access to non-dilutive capital, providing a platform that automates the financing process.

Since it was founded in May 2020, Capchase says it has made more than $2 billion available to nearly 3,000 companies across the world. It claims a quarter of those firms were European start-ups.

Capchase has opened offices in the Netherlands, Belgium, Finland, Sweden and Denmark, and is also launching a new European headquarters in London.

The cash will go towards maintaining this growth momentum and hiring an additional 100 employees on top of the 100 that already work at the firm. Money will also be spent on expanding its solutions beyond lending.

“Our mission is to automate everything that touches our customers’ finances, and this new round of funding will help us to launch additional products that enable founders to focus on what matters most: building and selling their product,” Fernandez says.

The New York-based fintech raised $280 million in new debt and equity funding last year.