Pay as you grow financing pioneer nears US$2B valuation
Proprietary AI-driven platform has funded 8X as many female founders as typical VC; 30% of funded founders are people of color
Clearbanc, the world鈥檚 largest e-commerce investor and the company revolutionizing the way founders grow their businesses, today announced a rebrand and $100M in new Series C equity funding to fuel the company鈥檚 ambitious growth plans, bringing the company鈥檚 valuation to almost $2B.
To reflect its evolution from a source of efficient capital for founders to a broader platform of growth products and services, the company is rebranding as Clearco.听With proprietary algorithms that are gender-, race-, and region-agnostic, Clearco is unique in its commitment and ability to fuel entrepreneurship outside of traditional networks and regions. While global VC funding for female founders dropped by 27% in 2020, according to听Crunchbase, Clearco funded eight times as many companies headed by female founders as traditional VC firms. In that same timeframe, 13% of Clearco鈥檚 funding went to companies headed by Black and LatinX founders, compared to 2.6% for traditional VC firms; in total a third of Clearco funding went to founders of color.
鈥淭he move from Clearbanc to Clearco really signals our move beyond capital,鈥� said Co-Founder and President Michele Romanow. 鈥淲e鈥檝e invested US$2 billion in 4,500 plus companies, and we鈥檙e building a product suite to support founders that goes far beyond funding, based on what they鈥檝e told us they need most. Our new name reflects our broad commitment to partnering with founders to build thriving businesses.鈥�
In addition, Clearco鈥檚 algorithms 鈥渟pread the wealth鈥� geographically. While 80% of typical US VC funding last year went to four states that have traditionally been tech hubs (California, Texas, New York and Massachusetts), Clearco鈥檚 total for those states was 45% with 55% going elsewhere. Clearco has funded companies in all 50 US states and all ten Canadian provinces and three territories, as well as the UK, where to date 70% of funds have gone to companies located outside London.
鈥淥ur goal is to change the face of fundraising, and we鈥檙e really proud to be showing it can be done,鈥� Romanow said.
To fuel these plans, Clearco raised US$100M of equity and US$250M of debt in a Series C round that takes the company鈥檚 valuation to nearly $2B. Oak HC/FT led the round and Co-Founder and Managing Partner听Annie Lamont听will join the company鈥檚 Board of Directors.听Lamont has appeared on the Forbes Midas List and has been a VC and investor for more than three decades. New investors include Founders Circle and听executives from Stripe, Square, Affirm, Adyen, Robinhood, Betterment, Airbnb, Hubspot, AirWallex and Apple. The new debt comes from Credigy (a National Bank subsidiary) at a significantly lower cost of capital, allowing Clearco to offer more competitive rates to its growing portfolio than any pay as you grow financing company in history. To date, Clearco has raised over US$170M of equity.
“With US$2B deployed to more than 4,500 founders, we’ve proven that we can find and fund entrepreneurs using machine learning and AI in a much more egalitarian way, and we’re gratified that the investment community sees that,” said Co-Founder and CEO Andrew D鈥橲ouza. 鈥淲e鈥檙e also excited to welcome Annie to the Clearco Board. Her 30 years of business and investor experience make her the ideal person to join us at this inflection point and work with our executive team to grow our business and brand.”
鈥淥ak HC/FT is thrilled to partner with the market leader in the alternative funding space,鈥� said Lamont. 鈥淲e strongly believe in Clearco鈥檚 mission to democratize access to capital, and we鈥檙e excited to see this next phase of growth.鈥�
Clearco now offers an industry-leading suite of performance financing products and services tailor made to help founders retain ownership including:
- ClearCapital for ecommerce founders 鈥撎�Clearco鈥檚 signature 20-minute term sheet offers marketing growth capital from $10K-$10M for growing ecommerce founders.
- ClearInventory Capital听鈥�听Clearco will buy your inventory, then you pay it back as it sells through for cost + 6%. This allows founders to pay as they grow.
- ClearRunway for SaaS Founders听鈥�听Uses data science and real business metrics to get access to up to 24 months of future revenue at a discounted amount today. Fund growth, extend runway, and expand faster to get a higher valuation, keep equity, and stay in control.
- ClearValuation听鈥�听Advanced data science expands Clearco鈥檚 product beyond capital, providing a free valuation to founders and insights and recommendations to increase their company鈥檚 value and connect with investors and M&A buyers.
- ClearAngel 鈥�听ClearAngel gives early stage founders (with as little of $2K of monthly revenue) access to revenue share capital, data-driven advice, and Clearco鈥檚 extensive network of apps, agencies, and investors.
鈥淩ecovering from the COVID-19 pandemic will take all of our best minds.听Clearco supported founders right from the start of the pandemic and looks forward to accelerating this support,鈥� said D鈥橲ouza. 鈥淲e鈥檙e proud that the technology we鈥檝e developed is identifying promising businesses regardless of who the founder is or where they live, and we look forward to working with them to get the world鈥檚 economy back on track.鈥�
