Access to financing for technology companies is sometimes difficult. Capchase, a fitech founded in Boston in 2020, dedicate their efforts to streamline procedures and also enter the European market.
What is Capchase and why do you expect to grow no less than 400% in the coming months?
Capchase is a platform for technology companies with recurring income to access non-dilutive capital. Founded in Boston in 2020 by three Spaniards and a Pole, we provide financing bringing future cash flows to the present, thus extending instant credit lines. The companies that work with us get access to fast, flexible financing that does not dilute their holdings.
It is a model that is radically changing the traditional financing of Venture Debt or Venture Capital, as shown by the results obtained in our first 10 months of operations: more than 400 companies have already benefited from Capchase solutions, being able to access more than $ 390 M of capital.
In the next 6 months we will launch new products and extend our operations throughout Europe. This market is already showing significant demand; More than 50 companies in the region have been able to access € 100M of financing in the month that Capchase has been operating here.
You point out that you help companies to unlock cash, how do you do it and why is it interesting for companies?
In this sense, our model is very simple: Capchase proposes fast, non-dilutive financing that adjusts to the startup’s capital needs at all times. It is a radical departure from current financing models, which are long and complex. Any company with recurring revenue – as most SaaS (Software as a Service) startups are – can create an account with Capchase, connect their data, and have in less than 24 hours the capital they need to grow better and faster.
Raising funds is a constant battle that often turns into a well of resources that hinders the work of the founding team. Our mission is to put this financing on autopilot, so the company can focus on what really matters, which is building and distributing great products.
From your statements, it seems that you focus on helping the growth of technology companies, thanks to their financing and Series A, what kind of technology?
In general, we are quite agnostic with the technology that our clients are building. On the one hand, we work with companies in the artificial intelligence sector or that have built complex software for data analysis. However, it is not a requirement that the company be purely technological, as long as it is tech-enabled – that is, that the technological component is a differentiating factor in your business. For example, we work with startups that offer more traditional but deeply digitized services. They are not such high-tech companies, but they are tech-enabled – They have built digital platforms to improve their distribution and margins, and that is what makes them so successful.
Is there any technology that you see a special future for?
To financial technology! Jokes aside, we have seen it on the consumer side through neobanks (eg Revolut, N26), lenders (Affirm, Klarna) etc … The financial sector has always gone hand in hand with technology, but now more than ever. We want to transform the way technology companies finance themselves because we think the model can be much better, and we use technology to build our products and distribute them.
The approach is especially attractive for European tech companies, how is the sector doing? Can your companies achieve the technological innovation that we see in the US?
From Europe, we can and must. The technical talent we have on this side of the pond is just as good as the American. We have a bit of culture and ambition left, but more and more European companies with a global focus are emerging, beyond copycats of American models. This is excellent news for the industry. That is why we are so eager and excited to grow in this market and serve startups in the region. We are in a very sweet moment, entering the era of European mega rounds, I hope it continues like this, of course the potential exists.
Investing in technology, a long-term bet
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