Capchase, which gives startup founders tools to find nondilutive financing, raises an $80M Series B led by 01 Advisors, bringing its total funding to $400M+
New York-based Capchase has closed an $80 million Series B as the company looks to expand its funding platform that offers founders nondilutive financing alternatives.
Context & Ripple Effects
Capchase has compressed a full funding arc into under a year: a $125M Series A led by QED Investors in June 2021, a $280M follow-on weeks later, and now an $80M Series B led by 01 Advisors that pushes total funding past $400M. The throughline is consistent — lend against SaaS companies' recurring revenue so founders can grow without selling equity.
The new round lands just as the 2022 fundraising climate tightens, which is precisely when alternatives to priced equity rounds become most attractive to founders — and when a lender with fresh capital can take share.
First-order effects
- Capchase gets the balance sheet to expand its nondilutive financing platform, while 01 Advisors takes a lead position in a company whose product directly competes with the dilutive venture rounds its own backers typically write.
- SaaS founders gain a larger pool of revenue-based capital at exactly the moment flat or down rounds make avoiding a priced raise more valuable.
Second-order effects
- Adjacent startup-tooling vendors feel the pull: Pulley's recent cap table management raise underscores how much of the founder stack assumes equity dilution — if revenue-based financing scales, cap tables stay cleaner and the tooling around them matters differently.
- Other lenders chasing recurring-revenue-backed deals face a better-capitalized rival able to write larger checks and price more aggressively for the same SaaS cash flows.
Third-order effects
- If the pattern holds, the startup capital stack stratifies: equity for riskiest bets, revenue-based debt for growth against proven subscriptions — making predictable ARR, not ownership stakes, the primary collateral young software companies borrow against.
- New York's fintech cluster keeps deepening around capital allocation rather than consumer banking, with firms like Capchase and Capitolis both building infrastructure that reroutes how institutions reach borrowers and balance sheets.
The trend: Venture-backed software companies are layering nondilutive, revenue-based debt on top of traditional equity, turning recurring revenue itself into the asset class lenders underwrite.