Toronto-based fintech Clearco has successfully completed a series of actions to recapitalize its business and solidify its position as the leading provider of growth capital to e-commerce businesses. These actions include a $60 million equity raise from existing investors and a new asset-backed financing facility worth up to $100 million. The facility is expected to support $850 million of Clearco originations over the next two years.
According to Clearco, these accomplishments mark the culmination of a year-long transformation that has focused on technology, product, and management. The $60 million Series D investment round was led by longtime Clearco investors Inovia Capital and Founders Circle Capital. Additionally, Clearco has closed a new asset-backed facility from Pollen Street Capital, a leading global alternative asset management firm. This new facility will be used to fund revenue-based advances to e-commerce businesses approved for funding through Clearco’s AI-backed underwriting model.
Clearco CEO Andrew Curtis expressed his excitement about the funding round and the launch of the new asset-backed facility, highlighting that they substantially delever the company and create a new and improved Clearco. Curtis emphasized that these actions enable Clearco to continue supporting the growth of e-commerce businesses in the face of funding challenges. He also reiterated Clearco’s commitment to providing the necessary capital and resources for e-commerce companies to succeed, considering them resilient and poised for growth.
Clearco offers its customers access to Invoice Funding ranging from $10,000 to $2 million, with predictable payment amounts over periods usually between four to six months and no hidden fees. Through its Invoice Funding product, Clearco provides a stable source of working capital, allowing companies to scale their operations and unlock cash flow. This is particularly important as lenders and banks continue to tighten lending to small businesses, leading to reduced access to capital. Clearco’s recapitalization comes at a pivotal time when startups, especially e-commerce businesses, are facing multiple challenges and need reliable financing options.
The decline in venture capital funding, which fell by 48% in the first half of 2023, further emphasizes the importance of Clearco’s role in small business financing markets. With limited access to capital, global economic uncertainty, and rising interest rates, many businesses have been forced to slow down their growth. Clearco steps in to bridge this funding gap and support the growth of e-commerce businesses during these challenging times.
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