Toronto-based Clearco, formerly known as Clearbanc, has raised $215 million in a growth equity funding round led by Softbank’s Vision Fund 2.
Founded in 2015, Clearco was one of the first companies in the alternative finance space. As of now, the company has raised a total of $681 million and was last valued at over $2 billion in April 2021.
The company intends to use its new cash to expand internationally. It recently opened offices in the UK and is in the process of entering the Netherlands, with plans for other European nations and the Asia-Pacific region on the horizon.
Clearco provides income-based loans, ranging from $10,000 to $10 million at a 6% fee, to startups primarily in the SaaS, mobile app, and e-commerce markets. To this point, Clearco has advanced more than $2.4 billion into 5,500 companies.
According to co-founder and president Michele Romanow, Clearco aims to eventually fund one million entrepreneurs across the globe.