Shantel
Key Takeaways:
- Capchase, a leading provider of financing solutions for Software-as-a-Service (SaaS) companies, has achieved a significant milestone by deploying more than $100 million in funding for women and minority-led startups through its 2021 initiative.
- In an industry where funding for founders who identify as women or as persons of color has historically been limited, Capchase’s AI-driven technology has enabled the rapid deployment of funds, increasing accessibility for these underserved groups.
- The economic downturn in 2022 further highlighted the disparity in venture capital funding, with only 2% of total funding going to women-founded startups in the U.S. and 1.8% to minority-founded companies.
- Capchase’s data-driven approach, focusing on revenue, subscription, and financial data, eliminates bias and provides an equal opportunity for all founders to receive funds, grow their businesses, and retain their equity.
Addressing Funding Inequality for Women and Minority Founders
Capchase has successfully deployed more than $100 million in funding to women and minority-led startups as part of its initiative to address the inequality in funding allocation. The global economic downturn and subsequent decline in venture investment further exacerbated the funding challenges faced by underrepresented founders. In 2022, women-founded startups received only 2% of total venture capital funding in the U.S., and minority-founded companies received 1.8%.
Miguel Fernandez, co-founder and CEO of Capchase, emphasized the importance of improving equality in the technology industry and supporting women and minority founders. Capchase’s data-driven approach to revenue-based financing enables unbiased funding decisions, providing equal opportunities for all founders to secure funding and foster business growth.
Empowering Diverse Founders for Success
Despite the obstacles faced by women and minority founders, they have demonstrated their entrepreneurial success. Female-founded startups, in particular, have maintained a lower median burn rate compared to their male-founded counterparts, highlighting their ability to navigate challenging funding environments. Capchase’s initiative has been successful due to its commitment to evaluating applicants based on their revenue, subscription, and financial data, ensuring fair treatment and equal opportunities for all founders.
Flora Azucena, CEO and founder of Alchemy Vision, acknowledged the difficulties faced by diverse founders in accessing funding and recognized Capchase’s contribution to creating greater opportunities for individuals and innovation. The funding provided by Capchase has allowed Alchemy Vision to focus on its mission of supporting patient care and practice growth while empowering the medical staff in their noble profession.
Continuing Support for Women and Minority-Founded Startups
Capchase will continue to support women and minority-founded startups through its technology-driven approach, which evaluates startup fundamentals and scenario analysis to determine eligibility and funding amounts. In addition, Capchase recently launched Capchase Pay, a buy now pay later product designed to shorten SaaS sales cycles and expedite deal closures.
To learn more about Capchase’s suite of products and services, including Capchase Pay, visit their website at www.capchase.com.
About Capchase
Capchase is a growth partner for ambitious Software-as-a-Service (SaaS) and recurring-revenue companies. Founded in 2020 and headquartered in New York City, Capchase empowers SaaS companies to accelerate growth through non-dilutive capital, payments, and revenue acceleration software. Their innovative financing solutions bring future expected cash flows to the present, providing fast and flexible funding without diluting ownership. With a track record of working with over 4,000 businesses and partners, Capchase has made $2 billion in funding available to the SaaS industry.
For more information about Capchase, please visit capchase.com.
