The Spanish-American fintech Capchase, a provider of non-dilutive capital for startups with a SaaS (software as a service) model in growth phase and with recurring income, has closed a new round of financing of 280 million dollars (about 238 million euros ) in debt and equity, led by the i80 Group fund, based in New York and Silicon Valley. The financing comes after the company closed another Series A round of 125 million dollars (103 million euros) last June, which on that occasion was led by the US venture capital firm QED Investors.
The new funds raised will help Capchase finance the European recurring income ecosystem, according to the company, which points out that this market is already showing significant demand: More than 50 companies in the region have been able to access 100 million financing in the Capchase has been operating in Europe for the month. Currently, the fintech operates in Spain and the United Kingdom, and expects to expand in Europe during the next 6 months.
The company, founded in 2020 in Boston but with a team in Spain and the US since its inception, had previously raised another 60 million dollars (almost 50 million euros) also from i80. As he explained to CincoDías last June, Capchase helps technology companies access the capital they need to grow faster, without having to sell their company little by little. The firm offers companies an alternative to venture capital and traditional debt. A formula that does not dilute the participation of the founders of the startups.
Along with the new round of financing, the company also announces the launch of an expense financing service for technology companies. The product, called Capchase Expense Financing, allows those companies to choose flexible terms to pay large expenses (legal, marketing, cloud or payroll, for example) without depleting their cash.
The service allows you to choose repayment plans of 3, 6, or 12 months, so that startups can align expenses with income and identify expenses that they prefer to extend over time, as detailed by the company.
“It is the first solution of its kind in the industry, and we believe it is going to be a huge change in how the industry operates,” says Miguel Fernandez, co-founder and CEO of Capchase. “Managing large expenses and making difficult decisions around how to spend your capital are some of the most common problems our clients face. There is also a huge opportunity to cut costs by using the discounts offered by providers to clients who pay early. With our new product, Capchase customers can pay in advance, get deep discounts, and repay Capchase in installments, “continues the manager.
Also Henrik Grim, CEO of Capchase in Europe, argues that there is a huge demand for European startups looking for new financing solutions. “We have seen a significant negative bias in the technology ecosystem towards debt, mainly because it has historically been complex and unfriendly financing by traditional lenders, in addition to being onerous processes,” he says.
The new product to finance expenses is already being used by some startups such as Declarando. Its founder and CEO, Juanjo Traver, points out that its use allows “smoothing our cash flows, and investing in a stronger and more consistent way in our growth.”
Capchase has already funded 400 companies and expects to raise this number significantly after achieving $ 280 million in additional funding.
