Capchase lands $400m in new debt financing amid growing startup ‘down rounds’

Less than two years after launching Capchase says it now has $1bn of capital to provide to SaaS startups and a quickly growing customer base in Europe.

Image source: Capchase

Capchase, a lender to startups, has landed a $400m debt financing deal. 

The financing, which comes from i80 Group and an undisclosed “international banking group”, will allow Capchase to scale its non-dilutive funding to SaaS startups with recurring revenues in the US and Europe.

It comes on the back of a tough first half of the year for VC equity funding that has seen volumes shrink and some notable ‘down rounds’ where investors have applied more stringent valuations to companies’ equity. 

Capchase, which is based in the US but opened a Europe HQ in London earlier this year says in the past twelve months its European business has grown tenfold. Since the start of 2022, the company has expanded into the Nordics, Netherlands and Belgium.

Capchase will now be able to deploy more than $1bn to SaaS companies in the next few years, the company said in a media statement.  

Alongside i80 Group, Capchase’s list of funding partners includes a number of VC investors, including SciFi VC, QED Investors, Bling Capital, Caffeinated Capital and 01 Advisors.

“We have made extraordinary progress in Europe over a very short period of time. There is a huge amount of demand for alternative funding. This demand is only increasing as well run SaaS startups look for capital to continue to grow during these uncertain economic conditions,” said Henrik Grim, MD of Capchase.