Recurring Revenue Company Software: Capchase takes it to be a platform where businesses can turn their recurring payments into growth funding. It is a New York-based provider for non-diluted capital for startups and small businesses who want to grow their business. In simpler terms, it is a Fintech startup that aims to raise awareness and help startup founders. With the help and backing up of Capchase, startups can quickly get access to funds for growing their business.
About Capchase: Recurring Revenue Company Software
Founded in 2020, by Ignacio Moreno, Przemek Gotfryd, Luis Basagoiti, and Miguel Fernandez. Capchase offers a bunch of intelligent solutions and tools for startups to grow. They also provide them with the critical strength to convert their recurring revenue into a growth fund with the help of their cash flow software and growth tool.
Capchase targets VC-backed B2B SaaS companies in the Seed through Series C stage. Approximately 6.5k companies in the U.S currently fit this criterion, with average revenue of $1.8 million annually. The market is around $11 billion in combined spending, which would mean about $ 1.7 billion in financing fees, based on data from Pitchbook.
Jordi Ferrer, the founder and CEO of Capchase, says, “With Capchase, we’ve been able to heavily invest in growth while taking our time when it comes to taking the next dilutive equity infusion. This will put us in the best possible position when we do decide to raise around.”
See Also: Indmoney: Your financial tracker
What problem does Capchase solve for startups?
Business to Business SaaS customers wants to pay for software purchases monthly without any delay. Early-stage companies to business startups need cash upfront. They want their customers to spend every month to give out those subscriptions.
For the same, these companies usually reach an agreement to give out hefty discounts. These agreements harm the annual contract value (ACV) and create friction in the closing process, delaying closings and sometimes even causing deals to fall through.
To solve this problem, every time a SaaS company closes an agreement, Capchase turns that contract into a years-worth of cash at the beginning. The end customer then pays every month until Capchase is paid back in full. Utilizing this solution, SaaS companies don’t need to give discounts. They can erase the friction associated with negotiating payment terms. They also get the cash upfront to reinvest in growth and extend their runway.
Overall, by using Capchase, SaaS companies can sell software at a higher price, more often, and longer than they would under the old way of doing business.
How does it work: Recurring Revenue Company Software?
As mentioned earlier, Capchase is a recurring revenue company software. It converts upfront cash flow to fund growth to businesses and startups. Capchase charges an upfront fee which customers pay every month. For instance, if a company closed a contract for $1,000 per month in revenue. Then Capchase would advance $10,500 on day one, then collect $12,000 over the following 12-month period.
What services do Capchase: Recurring Revenue Company Software offer?
With the help of Capchase services, companies can grow or extend their growth running time while using one or more of their products. They offer a lot of meaningful and development based software and services to growing companies. These services and tools as a solution are as follows:
1. Growth Flow
Growth Flow is a solution that offers upfront cash flow to startups to fund their growth. With this growth flow solution, businesses can increase and score up to 60% of their accounting interest rate on day one itself.
Capchase is like a growth backbone to startups and small businesses. The software helps companies to scale at their own pace. It also allows them to remain stress-free and gives them the time to embrace their growth.
Growth flow is a fast solution. The average term sheet takes just about 24 hours to get through. It is a fairer and much more flexible option for businesses.
The CEO and co-founder of Blackthrown, Chris Federspiel, says, “Capchase allowed us to scale ahead of revenue and helped us build a financial model, with great communication and trust.”
2. Extend Growth Solution
It is evident to note that large cash flows and loans can jeopardize a company’s workflow. With the help of Capchase’s comprehensive growth solution, this solution startups can buy the cash flow first and take their time to grow their business. This cash flow software, they can pay the cash later without stress.
With this growth tool, startups and businesses can invest in large quantities. They do not have to choose between growing their company and maintaining their business.
Companies can get started quickly by splitting the payments and holding on to their growing independence.
3. Earning Solution
Small businesses and startups tend to save up cash to later invest in their own business. This saved-up cash is known as Idle Cash.
With the help of Capchase, businesses can use their idle cash and earn more with their cash capital. Their investment account is backed by FDIC and DIC insurance.
The best part is that businesses can access their savings and idle cash at any time. Thus, we at Kiwed, highly recommend using this software.