SA国际传媒

New York-based 鈥攚hich is no stranger to large debt raises鈥攃losed its largest debt round to date, locking up $400 million to provide funding to startups.

The new round comes just about four months after the nondilutive capital provider raised an $80 million Series B, and almost a year after it closed a $280 million round of debt and equity led by specialty finance firm .

The newly announced financing also is from i80 Group and what the company called 鈥渁n聽 international banking group鈥� in a . Capchase now raised nearly $950 million in a mix of debt and equity, according to SA国际传媒 data.

Capchase now has more than $1 billion to deploy to SaaS startups, it said in a release.

What Capchase brings to the table

The company offers a variety of tools on its platforms that give founders nondilutive financing tools to fund their startups. Its main product鈥擟apchase Grow鈥攅nables recurring-revenue companies to access future capital upfront. The loan is based on a company鈥檚 annual recurring revenue minus what is typically a 5% to 10% discount.

Earlier this year, Capchase鈥檚 co-founder and CEO , told SA国际传媒 the company was seeing significant new traction due to market uncertainty. It now reports seeing a 50% increase in demand from April to May of this year.

In March, Fernandez said Capchase had worked with nearly 3,000 companies in the U.S. and Europe鈥攎aking over $2 billion in funding available鈥攕ince launching in 2020, and watched its ARR increase 2,300% last year.

Alternative financing

It has been well documented that the venture market is not what it was last year, as valuations have been slashed and funding is down.

Such a market may force startups to look more closely at alternative financing tools such as venture debt, shared earning agreements and revenue-based financing.

The alternative financing sector has grown recently, as companies such as Toronto-based , Miami-based and Austin-based all have raised money in the last couple years.

In past years, such tools proliferated in popularity as founders tried to avoid dilution and loss of control of their companies in a hot market with investors waving cash at them.

Now those tools could become a necessary part of survival where money is much tougher to come by.

Further reading

• Exclusive: Capchase Raises $80M Series B To Give Startups Alternatives To Venture
• 鈥嬧赌�Got Revenue? Alternative Financing Tools Look To Help SaaS Founders Avoid Dilution
• Capchase Doubles Down, Raises Fresh $280M To Provide Startups With Alternative To VC Funding
• Fintech Unicorn Pipe Looks To Build a Line To Hollywood

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