CPE News (10.4.2023) – Clearco announced today that it has completed “multiple actions” to recapitalize its business and solidify its position as the leading provider of growth capital to e-commerce businesses.
The transactions include a US $60 million equity raise from existing investors and a new asset-backed financing facility, which provides up to $100 million in financing capacity, and is expected to support $850 million of Clearco originations over the next two years.
The Series D round was led by iNovia Capital and Founders Circle Capital. Clearco also secured a new committed asset-backed facility from Pollen Street Capital. The Pollen Street facility will be used to fund revenue-based advances to e-commerce businesses that have been approved for funding through Clearco’s AI-backed underwriting model.
Clearco provided no information on its “recap”.
Clearco raised over US $25 million in bridge financings in 2022 and Clearco has not specified if the US $60 million included the conversion of the issued debentures.
photo credit: Clearco
News Release
Clearco Announces Recapitalization, Raises $60M Series D Round Led by Inovia Capital and Founders Circle Capital and Closes New Asset-Based Facility with Pollen Street Capital to Support Growth of E-Commerce Businesses
Transactions and New Invoice Funding Product Mark Transformation at Clearco to Better Serve E-Commerce Customers
TORONTO, Oct. 4, 2023 /CNW/ — Toronto-based fintech Clearco announced today the completion of multiple actions to recapitalize its business and solidify its position as the leading provider of growth capital to e-commerce businesses. The transactions include a $60M equity raise from existing investors and a new asset-backed financing facility, which provides up to $100M in financing capacity, and is expected to support $850M of Clearco originations over the next two years. These accomplishments herald a new era at Clearco and mark the culmination of over 12 months of transformational change spanning technology, product and management.
The $60M USD Series D round was led by longtime Clearco investors Inovia Capital and Founders Circle Capital. Alongside the fundraise, Clearco announces the closing of a new committed asset-backed facility from Pollen Street Capital (“Pollen Street”), a leading global alternative asset management firm. The Pollen Street facility will be used to fund revenue-based advances to e-commerce businesses that have been approved for funding through Clearco’s AI-backed underwriting model.
“We are thrilled to announce this new round of funding and the launch of a new asset-backed facility as part of a broad recapitalization, which substantially delevers the company and creates a new and improved Clearco,” said Andrew Curtis, CEO of Clearco. “All of these actions allow us to continue to support the growth of e-commerce businesses during a time of funding challenges for many companies. We are firm believers in the continued resilience and growth of e-commerce as an industry, and are committed to providing the capital and resources these businesses need to succeed.”
In the last 12 months, Clearco has pivoted its product to focus on a streamlined capital solution, Invoice Funding, with predictable payment amounts and terms that are easy and hassle-free. Clearco uses AI and proprietary machine learning-based technology to underwrite businesses and help customers fund inventory and marketing invoices. The company has funded over 10,000 e-commerce businesses to date, advancing over $2.5B to help facilitate growth.
Clearco customers can access between $10,000 and $2M in Invoice Funding with predictable payment amounts over periods typically ranging from 4-6 months and no hidden fees. Clearco’s Invoice Funding product provides a stable source of working capital for companies looking to scale their operations and unlock cash flow, helping those merchants to grow in a market where lenders continue to retract from providing capital.
“We are excited to reinvest in Clearco not only because of the company’s success in revolutionizing the way small businesses access capital but also because of the significant transformation the company has made in the last 12+ months. Clearco has retooled and re-established itself as a valuable partner for e-commerce businesses,” said Karamdeep Nijjar, Partner at Inovia Capital. “We’re bullish about Clearco’s future and are confident the operational changes and newfound discipline and focus will create continued success for Clearco and 10,000+ customers.”
“Pollen Street is proud to support Clearco’s mission to expand access to capital to e-commerce business,” said Dan Khouri, Partner at Pollen Street. “Clearco was one of the first platforms to provide financing solutions to entrepreneurs and we’re excited to play a key role in accelerating their growth.”
Clearco’s recapitalization comes at a pivotal time when startups and specifically e-commerce businesses are facing multiple challenges, including reduced access to capital. Venture capital funding fell 48% in the first half of 2023, the lowest levels since pre-pandemic, and banks continue to tighten lending to small businesses. With limited access to capital, global economic uncertainty and rapidly rising interest rates, many businesses have been forced to slow their growth, underscoring Clearco’s indispensable role in small business financing markets.
About Clearco
Founded as Clearbanc in 2015, Clearco provides business-friendly capital for e-commerce companies to grow their businesses. Clearco makes it easier for entrepreneurs to grow their business without equity dilution, hidden fees, or compounding cost of capital. The leader in growth capital, Clearco has advanced over $2.5B, financing over 10,000 companies to date. For more information and to learn more about funding for your business, visit clear.co
Media Contact
Clearco
Nick Rosen-Wachs
nick.rosen-wachs@clear.co
SOURCE Clearco