Future of Investing, Member Exclusive

‘We put our skin in the game’: How Clearbanc is rethinking funding for growing startups

  • Last month Clearbanc released ClearAngel, a program that acts as an automated angel investor.
  • Clearbanc’s revenue-based model speaks to the increased need of startup funding.
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‘We put our skin in the game’: How Clearbanc is rethinking funding for growing startups

With Covid-19 leaving people jobless or with extra time to think, many are turning to entrepreneurship. And with all these new entrepreneurs looking for financing, this may be the perfect time for companies providing unconventional funding methods to shine.

We’re starting to see a specialization within these funding methods — in who they fund, how they fund and what they fund.

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Companies like Capchase and Pipe, for instance, provide funding for subscription-based businesses that correlates with the number of subscriptions a startup gets. Lighter Capital and Clearbanc provide revenue-based capital. 

While revenue based financing isn’t something new — PayPal, Square, Shopify and many traditional lenders all provide small business financing in the form of loans and merchant cash advance — it is changing, becoming more focused and automated.

 


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