Toronto’s Clearbanc is disrupting startup funding by providing companies cash to buy ads in exchange for a revenue share so they don’t have to sell as much equity to venture capitalists.
To meet the incredible demand these startup marketing dollars, Clearbanc has just raised a $50 million fund from Seamless co-founder Jason Finger’s new firm, Upper90.
The company was founded in 2015 by serial entrepreneurs and angel investors Andrew D’Souza and Michele Romanow, who is also a Dragon on CBC’s Dragons’ Den.
Clearbanc’s technology gives entrepreneurs access to capital without personal guarantees, warrants, equity, or credit checks. Its online automated system scans data from a business’ existing platforms like Stripe and Facebook, to gauge their financial health and revenue trajectory.
Qualified businesses receive ongoing capital in as little as one day as a capped revenue share deal. Businesses only repay the capital as they make revenue with no set repayment date and no compounding interest, ownership or control terms. Clearbanc provides companies with $5k to $10 million or more in marketing capital.