Capchase, the provider of financial solutions for SaaS companies, has announced that it will provide non-dilutive capital to startups led by women and minorities.
According to reports, in the last two years, the company has deployed over $100 million in funds for these underrepresented groups over the past two years, utilizing its patented AI technology to enhance operational speed.
In the United States, only 2% of the total venture capital funding in 2022 was allocated to startups founded by women, while minority-owned companies received just 1.8%.
The issue of equality in startup funding extends beyond the United States: female entrepreneurship in Europe received a mere 1% of the total capital last year, and companies founded by minorities raised only 0.7%.
“Global venture capital funding has been drastically reduced and start-ups in general continue to struggle to raise finance. Every player in the ecosystem has a role to play in improving equity in the tech industry and providing women and minority founders with the funding they need to grow is one of the areas where we knew we could help”, explained Miguel Fernandez, co-founder and CEO of Capchase.
“At Capchase, our data-driven approach to providing revenue-based funding gives us the ability to support bright women and minority founders without the inherent bias that is normally found in traditional funding processes”, he added.
The data speaks
The data supports why investing in these collectives is fair and prosperous: Capchase bases funding decisions on the applicant’s revenue, underwriting, and company financials, ensuring all founders have an equal opportunity to receive funding, grow their businesses, and retain their capital.
“As an immigrant, woman, and founder, it’s no secret that securing funding can be more challenging. Capchase understands that deploying capital for diverse founders can create greater opportunities for individuals and innovation”, said Flora Azucena, CEO and founder of Capchase.
Capchase will continue to support women- and minority-founded start-ups through the use of its technology that determines eligibility and credit line amount based on start-up applicants’ fundamentals and scenario analysis. applicants and scenario analysis.