Capchase, a US startup that helps tech company founders access non-dilutive capital, has raised $125 million in a mix of debt and equity.
QED Investors led the Series A, which was joined by Bling Capital, ScifiVC and Caffeinated Capital, along with several operator angels.
Founded in 2020, Capchase helps companies unlock cash that is otherwise tied up in future predictable revenue payments.
The firm says that by advancing future revenues, companies can invest without depleting their cash reserves and also avoid having to give up chunks of their companies in expensive equity rounds.
The just-in-time financing offered by Capchase enables tech companies to draw the right amount of funds at the right time, which, it argues, is a more efficient and affordable way to fund a recurring revenue business.
The startup also offers a proprietary programmatic funding model that is based on analytics and disperses just the financing required for growth on a monthly or weekly basis - as opposed to providing capital in one lump sum.
Over 400 companies use the Capchase platform, which has been used to issue more than $390 million in financing. A move into the UK and Spain is in the works.
"We built Capchase to help tech companies access the capital they need to grow faster, without selling their company bit by bit," says Miguel Fernandez, CEO. Capchase.