New Funding Initiative Announced for Women and Minority-Led Businesses


A $100 million funding initiative exclusively for women and minority-led businesses, which face well documented challenges securing venture funding, was announced today by Capchase, a New York-based provider of non-dilutive capital for recurring-revenue companies.

Capchase has taken a strictly data-driven approach to funding decisions, relying solely on company fundamentals and scenario analysis. The company believes this approach has removed unconscious biases known to influence venture funding. To date, more than 10% of the total financing that has been advanced by Capchase has gone to minority and women-led founders.

“At Capchase, we are proud to work with the most inspiring and innovative companies who are leading their respective industries,” noted Miguel Fernandez, co-founder and CEO of Capchase.

Recent research from the Harvard has found that less than 1% of overall venture capital funding has gone to minority-led businesses. Additionally, women and minority-led businesses typically see lower valuations and as a result, give up more dilution in their fundraising journey. This comes at a time when the number of women and minority-led businesses are growing faster than ever. Data from the Securities and Exchange Commission has found a 38% increase in the number of minority-led businesses since 2007, and a 17% increase in women-led businesses since 2017.

“When you look at the disparity in funding opportunities however, it’s almost mind-blowing,” Fernandez said. “Based on our experience with hundreds of companies across the country, we’ve seen first-hand the struggles that women and minority founders face when trying to access funding. By committing this dedicated growth capital, we hope to play a role in overcoming the roadblocks that have prevented so many quality businesses from securing critical funding.”

Additionally, the importance of securing funding that is non-dilutive, such as the programmatic funding advanced by Capchase, cannot be overstated. Research has found that equity is one of the biggest sources of wealth for individuals, making the balance of maintaining ownership crucial. Funding from Capchase, which is unbiased and based on data, helps founders preserve more equity throughout their growth journey and increase the value of that equity at a faster rate.

Capchase was founded in 2020 by a team of former SaaS operators—Miguel Fernandez, Luis Basagoiti, Ignacio Moreno, and former VC Przemek Gotfryd— and helps recurring-revenue to grow faster and avoid dilution by unlocking cash that is otherwise tied up in future predictable payments. This allows founders to either reinvest the upfront capital in profitable growth initiatives, or secure cash on hand to extend their runway.

Funding under the initiative is available immediately. Click this link to learn more about Capchase and to apply for funding.

Avatar

Peter Page is the Contributions Editor at Grit Daily. Formerly at Entrepreneur.com, he began his journalism career as a newspaper reporter long before print journalism had even heard of the internet, much less realized it would demolish the industry. The years he worked a police reporter are a big influence on his world view to this day. Page has some degree of expertise in environmental policy, the energy economy, ecosystem dynamics, the anthropology of urban gangs, the workings of civil and criminal courts, politics, the machinations of government, and the art of crystallizing thought in writing.

Read more

Grit Daily's Podcasts


Listen to The Like a Boss Podcast

News


VeeCon Preview: Gary Vaynerchuk on Grit Daily News
Danni Peck
on May 14, 2021

VeeCon Preview: Everything Gary Vaynerchuk Ever Wanted in a Conference

An NFT convention? Is that even possible? It’s more likely than you think. Gary Vaynerchuk, wine critic and entrepreneur and co-founder of restaurant reservation software such as Resy and Empathy Wines, has announced VeeCon for any VeeFriends token holders. VeeFriends is an NFT project created by Vaynerchuk that showcases his NFT collection of art. With […]

Peter Page
on May 13, 2021

ScriptDrop CEO Amanda Epp Explains Why Prescription Home Delivery Will Outlast the Pandemic

Timing, as it has long been said, is everything but sometimes timing is dictated by what nobody could plan for – one example being a global pandemic. When ScriptDrop, a very fast growing startup prescription delivery company based in Columbus, Ohio, was launched in 2017 with Amanda Epp as CEO, demand for its service was […]

Sarah Marshall
on May 11, 2021

Adam Anderson of Hook Security Views Entrepreneurship—and Cybersecurity—in Unconventional Ways

Adam Anderson is not your typical entrepreneur. He has founded multiple companies, but now, he helps CEOs fire themselves. While CEO may sound like the dream job, Anderson believes that many CEOs can help their companies by putting effective leadership teams in place and then getting out of the way—transitioning from the role of CEO […]

Stewart Rogers
on May 11, 2021

Socialstack Lands Funding to Build Global and Diverse Social Token Economies

Socialstack, a social token protocol, has announced today that it has received $200k in funding to launch a new way for creators to interact with their community and fans. The protocol, which is on both Ethereum and Celo, was backed by the likes of Novum Insights, Aubrey Hruby, Decentranet, Adrianna Mendez, and Alan Laubsch. Solutions […]