Almost overnight, platforms that offer non-dilutive capital for recurring income businesses have gone white hot. It wasn’t until March that Pipe – who aims to be the “Nasdaq of revenue” – raised $ 150 million, but two months later he had raised $ 250 million for a valuation of $ 2 billion. .
This fever is now reaching Europe, where Capchase is now raising an additional $ 280 million in new debt and equity financing, led by the i80 group, after a round of funding of $ 125 million in June. But unlike Pipe, Capchase plays both in the US and Europe, where it made $ 100million available to more than 50 companies in its first month of business on the continent.
Right now it is live in the UK and Spain, but hopes to expand to all of Europe this year.
Hispanic-American company is also launching ‘Capchase Expense Funding’ to enable businesses to manage their most important expenses – such as legal bills, cloud hosting services, salaries and bonuses, and recruiting costs – without exhausting their cash reserves, in 3, 6, 9 or 12 months in increments.
Miguel Fernandez, Co-Founder and CEO of Capchase said: “Our new expense financing solution is an industry first, and we believe it will be a game-changer. Since our launch a little over a year ago, we’ve seen first-hand the challenges businesses face when getting the financing they need to grow their business. Managing large expenses and having to make tough decisions about how to spend their money is one of the most constant and difficult issues our clients face. There is also a great opportunity to cut costs by using the initial discounts offered by vendors. Now, Capchase users can prepay with Capchase, get a discount, and pay Capchase monthly over the following months.
In an interview, Fernandez told me that their main competitor is venture capital debt: “This is the one we consistently continue to win against.
He said, “We are not limited to monthly or quarterly subscriptions, we can work with any income. We apply intelligence to it and work with clients. It’s not just the ability to generate income to find growth, but also the implied timeframe for achieving a business goal.