Last week, several news outlets reported that one of the players in our space entered difficulties and the entire founding team stepped down.
We're sorry to see a fellow company struggling, especially now, when VC markets remain closed and more founders than ever are looking for alternative financing options: with the recent economic downturn, VC financing has contracted 38% quarter over quarter. We believe, and are seeing in our data, that the need for alternative financing is stronger than ever.
Over the last week, we've had a number of existing clients and partners reach out to us with questions about what this means for the revenue-based financing industry as a whole, and we’d like to assure you that you’re in good hands: at Capchase, we rapidly recognized that focus is the most important tool to building a resilient operation, hence early on in our journey we decided to do the following:
- Focus only on SaaS companies: we’ve worked with over 3,000 SaaS companies to date. Because of this, we now understand their needs and concerns better than anyone else. Based on these learnings we created an internal Growth Advisory team to advise, assist and help SaaS leadership teams succeed
- Raised committed capital: we are not a marketplace. Unlike other players in the space, all of our capital raised to date is committed from multiple institutional investors. This enables us to work with companies and fund them directly, provided they meet our underwriting criteria.
- Invested in powerful risk, tech and data infrastructure to make sure we were ready to help founders navigate other challenges beyond financing
- Exercised discipline: we established strict criteria for who we can and can’t fund - and stuck to it
- Upheld governance: Capchase operates with a healthy degree of oversight from independent parties. Five of our board personnel are external and all come from different firms. We also undergo regular audits by multiple third parties, and have done since day 1.
With the decisions we’ve made on how to operate and how to focus, we’re very well prepared for 2023 and beyond - and to succeed in an emerging industry that we’re actively building, not just participating in.
Based on our growth, we also recently raised $400m (on top of $500m previously) that we continue to deploy. If you're interested in learning more about Capchase, send me a note at miguel@capchase.com or request a call on our website and we’ll help in whichever way possible.
We’re in this together, founders help each other!
