Clearbanc raises $300m in round made of equity and debt

Clearbanc, which helps companies access affordable growth capital, has raised $300m in new financing.

The funding was made up of a mixture of debt and equity. Highland Capital, a global venture capital firm, led the equity investment, with participation also coming from Inovia and Emergence Capital. Arcadia Funds and Upper90 supplied the financing facility.

With the fresh capital, the company will expand its sales and engineering team and scale the amount of growth capital it can offer portfolio companies.

Clearbanc provides entrepreneurs with access to growth capital without the need of personal guarantees, warrants, equity, or credit checks. A business can access funds between $10,000 and $10m within 24 hours.

Clearbanc co-founder and president Michele Romanow said, “It might seem counterintuitive to be raising capital, but it’s quite strategic — we’re raising more capital to build a new asset class. Equity is part of an entrepreneur’s toolkit, but we fundamentally believe it’s the wrong tool to fund the repeatable parts of your business-like digital ad spend. We encourage companies to spend equity on technical risk & R&D, and that’s exactly where we’re putting this Series B.”

As part of the deal, Highland Capital general partner Dan Nova will join the board of directors.

The capital injection comes a little under a year since Clearbanc previously sought funding. The company bagged $70m late last year, pulling in support from investors including mergence Capital, Social Capital, CoVenture, Founders Fund, 8VC, and iNovia Capital.

Copyright © 2019 FinTech Global

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