Capchase, a lending service that helps SaaS companies with recurring revenue grow their operations, raises $280M, following a $125M round in June (Capchase 280m 125m Junebutchertechcrunch)

Capchase 280m 125m Junebutchertechcrunch: Capital requirements for fast-growing companies are becoming increasingly burdensome. Whether it’s the $500,000 minimum individual investment required by Seedorf to buy a portfolio of startups or the $100 million required by Softbank for a single company, traditional financing options for small businesses just don’t cut it. Enter Capchase – a lending service that helps SaaS companies with recurring revenue grow their operations. Capchase has raised $280M, following a round of $125M in June 2018.

Founded in 2015, the SaaS-based lending platform has helped hundreds of startups and SMBs by providing $10,000 to $250,000 in financing to growing companies. These loans are collateralized against a percentage of the borrower’s account receivables. The company uses its proprietary credit scoring algorithm to help decision-makers better understand the creditworthiness of their clients. To date, Capchase has financed over 800 customers, including Tradesy, Upwork, and Teads.

Capchase’s newest investment comes from Fifth Wall Ventures along with existing investors Thrive Capital, New Enterprise Associates (NEA), and NFX Guild . The funding will be used to further expand the company’s customer base and invest in technology.

“We are excited to partner with Fifth Wall, as well as our existing investors Thrive Capital, NEA and NFX Guild, who have enabled us to provide hundreds of thousands of dollars in flexible credit to early stage tech companies. This new capital will enable us to continue supporting this fast-growing segment of the market and increase the size of the loans we make.”

-Yuri Milner, Founder and Managing Partner at Capchase.

The new investment comes just 8 months after Capchase’s $125 million round in June 2018. According to Crunchbase, this is the largest single round by any company in the FinTech sector. Prior to that, Capchase had raised $9 million in venture capital funding.

“Since launching our first platform product two years ago, we’ve built a rapidly growing business that provides working capital to early stage technology companies and has deployed over $500 million of working capital so far. We are excited to partner with Fifth Wall, as well as our existing investors Thrive Capital, NEA and NFX Guild, who have enabled us to provide hundreds of thousands of dollars in flexible credit to early stage tech companies. This new capital will enable us to continue supporting this fast-growing segment of the market and increase the size of the loans we make.”

-Eric Schurenberg, CEO at Capchase

The company is planning an initial close for its Series H round by October 2018. It will use the new capital to continue global expansion, provide dedicated customer success teams, improve its loan underwriting capabilities, and invest in technology.

“This is a testament to our ability to attract top talent in the lending space and our commitment to delivering value to customers.”

-Yuri Milner, Founder and Managing Partner at Capchase.

Capchase has raised over $700 million of lending capital in its 3-year history and has provided over $1 billion of funds globally.