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.
Rivka Abramson | March 04, 2021
close

Email a Friend

‘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.

SPONSORED

 

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.

 

This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “‘We put our skin in the game’: How Clearbanc is rethinking funding for growing startups”

Outlier OpinionsMakers

Data Snacks, Member Exclusive

Data Snack: US bank branch closures reach a new record high in 2021

  • The number of US bank branch net closings rose by nearly 40% year-on-year to 2,927 branches in 2021.
  • The pandemic pushed banks to reduce their footprint and focus more on their digital operations.
Iulia Ciutina | January 28, 2022
Member Exclusive, Modern Marketing

Marketing Briefing: For Capital One, marketing is a sport

  • Introducing Tearsheet's biweekly marketing briefing!
  • Kicking things off with Capital One's sporty marketing moves, our Acquire Conference (woot woot!), and a downloadable version of our recently published 'Gens Under the Lens' series
Rivka Abramson | January 28, 2022
Member Exclusive, Payments

Payments Briefing: BNPL will soon play a much bigger role in credit scores

  • Credit bureaus in the US are working to implement standardized credit reporting plans on BNPL loans.
  • BNPL use may start to play a much bigger role in consumers’ credit ratings.
Ismail Umar | January 27, 2022
Data Snacks, Member Exclusive

Data Snack: SMBs want more embedded banking options

  • The global market for embedded financial services for SMBs is forecasted to be worth $124 billion by 2025.
  • 85% of SMBs were surveyed to be using embedded digital services in their day-to-day operations.
Subboh Jaffery | January 26, 2022
Member Exclusive

Lending Briefing: Could we see more BNPL consolidation this year?

  • Given the growth and interest in the space, companies have increasingly been looking to get a piece of the BNPL pie.
  • As fintechs mature in their niche markets, larger players might continue to see this as an opportunity and go for it.
Iulia Ciutina | January 26, 2022
More Articles