Capchase works with these users and organization types: Capchase Stock ... Mid Size Service, Small Company, Business, Freelance, Nonprofit, and Government.
what's much better owning 100 of a 10 million
business or 15 of a 100 million dollar
company the response how about the best of
both
you're right with standard funding
that's not actually an option previously
keep your 100 with cap chase we utilize data
to make financing quicker fairer and more
versatile based on your future
predictable profits and after that we wrap it
all up with a single transparent charge
so let's get this party started at
There is constantly a moment when a start-up's creators, senior management team, and top financing executives assess methods for how to scale the business to the next level and brochure what's required to do that effectively. Protecting financing at an early stage can accelerate growth and result in obtainable and measurable success. Ultimately, financing supervisors and the strategic preparation group need to decide on the right financing source to help the business reach its objectives.
It can be challenging to pick the financing model that finest lines up with the tactical targets that management sets for the company. Weighing the threats and competitive dangers in a balanced and smart method is important as it can choose the future of your business The implications of offering equity, handling inconsistent capital, rate of interest movements, and the need to make prompt payments to lenders are among the factors to think about, simply to name a few.
That said, with the increase of new and more sophisticated funding options that put business interests of start-ups and midsize business initially, there's typically a method to figure out a service that's a good fit. It is essential to examine the various funding choices that are available to a company's creators, management accountants, and financing officers and what considerations they require to produce both the long and brief term.
Lobo here co-founder at traction and boast AI thrilled to host Miguel Fernandez co-founder and CEO of capchase a provider of non-dilutive development capital for repeating Income companies essentially helping companies grow without quiting that valuable Equity you took so long to build Miguel welcome to traction thank you so much for joining us Hey Lloyd thank you so much for having me it's fantastic to be here yeah I'm very delighted to share more incredible I'm excited to enter your backstory so let's kick this off how did you come together with your Founders why cap Chase what else did you think about from what I comprehended you're a very first time founder very first time founder it resembles you struck a home run out of the park out of the gates I like it man that's incredible well as soon as they won you know like it's never the Crowning achievement never ever like never ever counts up until the game is over right essentially so so so yeah um we are 4 co-founders you know and it's amusing because we have actually all met through first as friends you know and then as co-founder so uh there's 3 people that interact at the same SAS company in in Spain so we all joined when it was extremely early I signed up with as the very first individual in sales and there are two people joined us that as product supervisors essentially and we see the business from no to a couple of million err over 3 years and after that we left um at the same time roughly I went to organization school and I went to business school on the other one went to do a stint in VC with the goal of going to company school afterwards so when I go to company school I I entered into into Harvard and you understand I was really delighted about it my whole objective was to go there to read more about how to end up being a creator and then ideally launch something upon graduation and the one that I landed there I was looking into currently a concept with among these co-founders and it was genuine concept it had nothing to do or very little to do with what we're doing now however you understand that was the beginning of the beginner and the journey Journey or the Insight that we had was that hey there remain in particular verticals there are a great deal of sequential payments you know and circular payments between companies and today you just need to wait for that sequence to develop or you understand like there's nobody simplifying those circular payments so we thought about hey why don't we do something comparable to like a split wise or companies in verticals such as you know fried or Logistics or construction you know you have a lots of celebrations that have to wait on various payments like they're all involved in one way or another so envision you have a platform and then you have company a post Company B 100 and Business B House Business c a hundred dollars in reality with this platform what would happen is a business.
a would pay a hundred the platform Business B absolutely no they would get they would pay no or get absolutely no and then business C we get a hundred dollars so when we're talking to large companies they all liked it but it was the common like cold start problem I'm like hey this is great when everyone's in the platform however till then it's it's quite difficult to get people to do anything so it was everything about hello how do we get more data how can we kind of begin this platform um without utilizing the platform to start with so it was everything about getting more information and to get more data we got to 2 conclusions it's like we either get information through providing an Analytics tool a workflow tool or we offer a funding we have a funding and we get the people or data provide us information in order to get financing so you know we started doing that like exploring a growing number of and more and after that what we need what we saw is that we understood more about sales than anything else we were really thinking about fintech and specifically in financing and you know like we would look at different modes different verticals and so on for 2 weeks at a time if we discovered enough stuff we would opt for two more weeks if we didn't would suffice and after that in January 2020 we had the the idea you understand which is funny of offering this this SAS business at all so they could extend terms to the customers but always get the money up front so we're solving the funding payment possessions business have which is they have in advance expenses to obtain clients and after that they earn money months of the month right so to prevent that cash card that every SAS business faces and that we faced in the past in the previous experience the objective was to provide a tool so they might state to the consumer hey look the price is 100
annually and if you wish to pay month-to-month great usage capshase you understand um and then Founders love that they were like hi people this is amazing this is the Holy Grail of SAS because I have to do discount rates so my ACV increases and I can close sales quicker because I'm offering versatile payment terms so it resembles the Holy Grail you understand you increase ACV you decrease cell cycle normally it's like a trade-off you understand and then the next thing they stated resembled hi why don't I do this for all my consumer base instead of for each new client that I solve so why don't I do this for my 300 clients instead of doing it for the web for the 10 new clients I get months of a month so then we saw what they wanted was to transform their ARR or the customer base into upfront funding to be less depending on Equity as I stated the starting yeah okay this is what we're going to begin with and after that we're going to discover a lot so we're gon na do the rest later on which's when the 4th co-founder joined who has a friend at HBS and then guy we began dealing with it like crazy and and left what is your long-term Vision so it began with you understand you landed on this hate you if you're sitting on ARR we know the company's uh churn we know the business's retention gross margins And so on so I can take their ARR and lend them in advance x times times x ARR or times x mrr but what is a long-term vision of of the company so for us it's it's it's or it's all around SAS business right like we only way with such business deliberately right so we resisted the
desire to work and go with financing you understand with any vertical we just work with SAS so our objective is to establish several products for SAS so we begin with funding and it's terrific due to the fact that companies truly count on us we really like a partner and we we help them to not simply get financing but work much better in a more effective method and through that we're discovering you understand chances to expand you understand in the transaction of a SAS product Capchase Stock
Capchase Stock