Fintech start-up Capchase plans European expansion after $125m funding round
Capchase, a provider of non-dilutive capital for recurring-revenue companies, has raised $125 million in its Series A funding round, led by QED Investors.
Additional investors in the round include early backers Bling Capital, ScifiVC and Caffeinated Capital, along with several angel investors.
The US-based firm announced the financing will be used to expand the programmatic funding offered to recurring-revenue companies.
Since its launch eight months ago, Capchase has issued more than $200m in financing and more than 400 companies already use its platform.
Capchase helps companies unlock cash that is otherwise tied up in future recurring revenue payments. By advancing future revenues, companies can invest more into growth without depleting their cash reserves.
Miguel Fernandez, co-founder and CEO of Capchase, says: “We built Capchase to help tech companies access the capital they need to grow faster, without selling their company bit by bit.
“With our Series A funding, we will be able to continue improving our core products and complement them with the new features that our customers expect from us.
“Future revenue presents a major opportunity when it comes to funding present growth. By recycling future funds, companies grow faster and do not need to rely on expensive equity rounds.”
The fintech also plans to use the financing to drive its expansion into European markets.
Its service is now available to businesses in the UK and Spain, and it expects to launch in more European countries in the following months.
Henrik Grim, general manager of Europe at Capchase, says: “Europe has been at the forefront of a huge amount of tech innovation, however an area that remains relatively undisrupted is how start-ups are funded and financed.
“We believe our approach will really appeal to European businesses because it offers a new, flexible alternative to both equity rounds and other debt providers.
“As the UK is the financing hub of Europe, as well as the largest European market for recurring revenue businesses, it was the natural first choice for us to put down our flag. The UK will also provide an ideal entry point for us to quickly expand into other European countries.”