It can be challenging to pick the funding model … Capchase Angel .
Receive up to a year of upfront capital immediately, providing you the flexible financing you require to grow your business and scale. We supply the required financing you require at that moment. Within 24 hours, we assess the financing required and deposit it instantly to your account.
Capchase works with these users and organization types: Mid Size Service, Small Company, Business, Freelance, Nonprofit, and Federal government.
what’s better owning 100 of a 10 million
business or 15 of a 100 million dollar
business the answer how about the best of
both
you’re right with standard funding
that’s not really a choice until now
keep your 100 with cap chase we use data
to make funding quicker fairer and more
versatile based upon your future
foreseeable earnings and after that we wrap it
all up with a single transparent charge
so let’s get this party began at
There is constantly a moment when a start-up’s founders, senior management team, and leading financing executives assess methods for how to scale the business to the next level and brochure what’s needed to do that successfully. Securing financing at an early stage can accelerate growth and lead to attainable and measurable success. Eventually, financing managers and the tactical planning group have to select the right financing source to help the company reach its goals.
that management sets for the company. Weighing the threats and competitive threats in a intelligent and balanced method is important as it can decide the future of your business The implications of offering equity, handling inconsistent capital, rate of interest movements, and the need to make timely payments to loan providers are among the elements to consider, simply to name a few.
That said, with the increase of new and more sophisticated funding alternatives that put the business interests of start-ups and midsize companies initially, there’s typically a way to find out a solution that’s a great fit. It is very important to investigate the different financing alternatives that are readily available to a company’s founders, management accounting professionals, and finance officers and what factors to consider they need to produce both the long and brief term.
Lobo here co-founder at traction and boast AI delighted to host Miguel Fernandez co-founder and CEO of capchase a provider of non-dilutive growth capital for repeating Profits business basically assisting companies grow without giving up that precious Equity you took so long to build Miguel welcome to traction thank you a lot for joining us Hey Lloyd thank you so much for having me it’s terrific to be here yeah I’m very delighted to share more amazing I’m delighted to enter into your backstory so let’s kick this off how did you come together with your Founders why cap Chase what else did you think about from what I understood you’re a very first time founder first time creator it’s like you hit a crowning achievement out of the park out of the gates I like it man that’s incredible well as soon as they won you know like it’s never ever the Crowning achievement never ever like never counts until the video game is over ideal essentially so so so yeah um we are 4 co-founders you understand and it’s funny due to the fact that we’ve all satisfied through first as buddies you know and after that as co-founder so uh there’s 3 of us that interact at the same SAS company in in Spain so all of us signed up with when it was very early I signed up with as the very first person in sales and there are two individuals joined us that as product managers basically and we see the business from zero to a couple of million err over 3 years and then we left um at the same time roughly I went to company school and I went to business school on the other one went to do a stint in VC with the goal of going to business school later on so when I go to business school I I got into into Harvard and you know I was really delighted about it my entire goal was to go there for more information about how to end up being a founder and then ideally release something upon graduation and the one that I landed there I was investigating already a concept with one of these co-founders and it was genuine concept it had nothing to do or really little to do with what we’re doing now however you know that was the beginning of the beginner and the journey Journey or the Insight that we had was that hey there are in certain verticals there are a lot of sequential payments you understand and circular payments between business and today you simply need to wait for that sequence to develop or you know like there’s no one streamlining those circular payments so we considered hey why don’t we do something comparable to like a split sensible or business in verticals such as you know fried or Logistics or building you understand you have a lots of celebrations that have to wait on various payments like they’re all associated with one way or another so imagine you have a platform and then you have company a post Company B 100 and Business B Home Business c a hundred dollars in reality with this platform what would occur is a business.
a would pay a hundred the platform Company B no they would get they would pay zero or get zero and then company C we get a hundred dollars so when we’re talking to large companies they all loved it however it was the common like cold start issue I resemble hey this is terrific when everybody remains in the platform but up until then it’s it’s quite tough to get individuals to do anything so it was all about hey how do we get more information how can we type of begin this platform um without utilizing the platform to start with so it was everything about getting more data and to get more data we got to two conclusions it’s like we either get information through providing an Analytics tool a workflow tool or we provide a financing we have a funding and we get the data or individuals offer us information in order to get financing so you know we started doing that like checking out increasingly more and more and then what we require what we saw is that we knew more about sales than anything else we were truly interested in fintech and particularly in funding and you understand like we would take a look at different modes various verticals and so on for 2 weeks at a time if we found enough things we would opt for two more weeks if we didn’t would cut it and after that in January 2020 we had the the idea you know which is funny of providing this this SAS companies at all so they could extend terms to the consumers but always get the cash in advance so we’re resolving the funding payment assets companies have which is they have in advance costs to get consumers and then they earn money months of the month right so to prevent that money card that every SAS company faces and that we dealt with in the past in the previous experience the objective was to give them a tool so they might state to the consumer hey look the cost is 100
annually and if you want to pay monthly great usage capshase you know um and then Founders enjoy that they resembled hey guys this is incredible this is the Holy Grail of SAS due to the fact that I need to do discounts so my ACV boosts and I can close sales faster since I’m offering flexible payment terms so it’s like the Holy Grail you understand you increase ACV you decrease cell cycle generally it’s like a compromise you understand and after that the next thing they stated resembled hi why don’t I do this for all my consumer base instead of for every brand-new client that I solve so why don’t I do this for my 300 customers instead of doing it for the internet for the 10 brand-new customers I get months of a month so then we saw what they wanted was to convert their ARR or the client base into upfront funding to be less based on Equity as I said the beginning yeah fine this is what we’re going to start with and then we’re going to find out so much so we’re gon na do the rest afterwards which’s when the fourth co-founder joined who has a good friend at HBS and then man we began dealing with it like crazy and and dropped out what is your long-term Vision so it began with you understand you arrived on this hate you if you’re sitting on ARR we know the company’s uh churn we understand the business’s retention gross margins And so on so I can take their ARR and lend them up front x times times x ARR or times x mrr however what is a long-term vision of of the company so for us it’s it’s it’s or it’s all around SAS business right like we just way with such companies intentionally right so we withstood the
desire to go and work with funding you understand with any vertical we only deal with SAS so our objective is to develop several products for SAS so we start with funding and it’s excellent due to the fact that business really rely on us we truly like a partner and we we help them to not just get financing but work much better in a more effective way and through that we’re discovering you understand opportunities to expand you know in the deal of a SAS item