US-based Capchase made $1.6B available in funding to entrepreneurs in 2021; expands to the Netherlands, Belgium

New York-based Capchase, a fintech company that provides financial solutions to startups by allowing access to funds as they grow, announced on Tuesday that it has expanded its services to the Netherlands and Belgium.

This development follows the company’s expansion into the Nordic region last month, building out headcount in Finland, Sweden, and Denmark.

Turning recurring revenue into growth funding

Founded in 2020 by Ignacio Moreno, Luis Basagoiti, Miguel Fernandez, and Przemek Gotfryd, Capchase is a platform for recurring-revenue companies to access non-dilutive financing solutions.

The fintech startup provides funding by bringing future expected cash flows to the present day, thereby, extending an immediate line of credit. Capchase claims that the companies that work with them are able to secure funding without having to give up equity.

Recently, the company announced one of the industry’s first alternatives for startups that are looking to monetise their idle cash, called Capchase Earn. The product generates 1.5 per cent APR and allows companies to reduce their overall cost of capital. It enables startups with idle cash reserves from sources such as a recent fundraise to offset rates on Capchase’s other financing products.

Expansion in Netherlands and Belgium

Capchase claims to have witnessed strong growth in 2021 by providing about $1.6B in funds to entrepreneurs throughout the year. Europe alone provides 25 per cent of Capchase’s business.

Henrik Grim, MD of Europe at Capchase, says, “Expanding to the Benelux region is the latest in a series of major milestones for Capchase in an incredibly short period of time. The region is seeing an unprecedented boom in capital and talent inflow to the tech sector, and there is a growing pool of startups that are ideally placed to take advantage of Capchase’s flexible financing options.”

The company has already provided growth capital to a range of leading companies in these regions, across SMB SaaS and enterprise SaaS, as well as consumer subscription businesses. Some of its clients include Homerun (HR tech platform) and Owlin (news analytics) among others.

Grim further adds, “European tech has never been more prosperous. However, the growth capital options available to founders remains limited. Our range of products, including Capchase Earn, provide a new, cost-effective way for founders to realise their ambitions. This is why, in six months of operations in Europe, we have already made hundreds of millions available in financing to hundreds of startups, and believe that these numbers will continue accelerating in the months to come.”