Capchase Deploys More Than $100 Million in Funding for Women and Minority-Founded Startups

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Jun 29, 2023, 09:00 ET

Milestone comes as women and minority-led businesses continue to be underfunded

NEW YORK, June 29, 2023 /PRNewswire/ -- Capchase, the leading provider of financing solutions for Software-as-a-Service companies, today announced a milestone for its 2021 initiative to provide non-dilutive capital to women and minority-led startups. Over the last two years, the company has deployed more than $100 million in funding to these underserved groups using the company's proprietary AI technology to increase the speed at which the funds were deployed.

Funding for founders who identify as a woman or as a person of color has always been disproportionately small. The economic downturn in 2022 that caused venture investment to decline by more than 50% only exacerbated the issue. In the U.S. only 2% of total venture capital funding during 2022 went to women-founded startups, and minority-founded companies only received 1.8% of total funding. The issue of equality in startup funding goes beyond the U.S. – women-only teams in Europe received just 1% of total capital in 2022 and minority-founded startups raised 0.7%.

"Global venture capital funding has fallen dramatically and startups in general are continuing to have a difficult time securing funding. We all have a role in improving equality in the technology industry and providing women and minority founders with the funding they need to grow is one of the areas where we knew we could help," said Miguel Fernandez, co-founder and CEO of Capchase. "At Capchase our data-driven approach to providing revenue-based financing gives us the ability to support brilliant women and minority founders without the inherent bias typically found in traditional funding processes."

Despite the headwinds, these founders have proven to be successful entrepreneurs, with female-founded startups maintaining a lower median burn rate than male-founded startups — an important metric for startup health, longevity, and growth when capital is harder to receive. The data supports why the $100 million initiative was successful – Capchase bases funding decisions on the applicant's company's revenue, subscription, and financial data, ensuring all founders are given an equal opportunity to receive funds, grow their businesses and retain their equity.

"As an immigrant, woman, and founder, it's no secret funding can be more difficult to receive. Capchase understands deploying capital to diverse founders can create greater opportunities for individuals and innovation," said Flora Azucena, CEO and founder of Alchemy Vision. "The financing provided by Capchase allows our team at Alchemy Vision to focus on our mission of supporting patient care and practice growth, as well as my personal mission to teach, lead, and inspire the medical staff providing care in this noble profession."

Capchase will continue to support female and minority-founded startups through the use of its technology that determines eligibility and draw amounts on applicant startup fundamentals and scenario analysis.

To learn more about Capchase's suite of products, including the recently launched Capchase Pay, a buy now pay later product created to decrease the length of SaaS sales cycles and close deals faster, please visit www.capchase.com.

About Capchase

Capchase is the growth partner for ambitious software-as-a service (SaaS) and comparable recurring-revenue companies. Our mission is to empower SaaS companies to grow faster through non-dilutive capital, payments and revenue acceleration software. Founded in 2020 and headquartered in New York City, Capchase provides financing by bringing future expected cash flows to the present day – thereby securing funding that is fast, flexible, and doesn't dilute ownership. To date, Capchase has worked with more than 4,000 businesses and partners, and made $2 billion in funding available to the SaaS industry. To learn more about Capchase visit capchase.com.

SOURCE Capchase