The Big issue
Customers of B2B SaaS want to make monthly payments for their software. Early-stage B2B firms lack upfront funding and prefer monthly payments from their clients.
They typically come to an arrangement by offering large reductions in exchange for getting paid up front. This reduces the annual contract value (ACV) and causes conflict throughout the closing process, which delays closings and occasionally even results in transactions failing.
For software-as-a-service (SaaS) business owners, as well as newbies looking to start their own new SaaS business in a very competitive system, finding founding members and technical support has been a particularly difficult issue. Capchase, though, has figured out an easy solution to this problem that you can use right away! Learn more in this informational blog post on how Capchase can help SaaS business owners by founding them and creating technical support for them.
How Capchase helps
To address this issue, Capchase converts each contract a SaaS provider closes into an upfront payment for a whole year. The end user then makes monthly payments up until Capchase is fully repaid. By using this approach, SaaS providers may eliminate the friction that comes with negotiating payment terms and avoid the need to provide discounts. They receive the money up front as well, which they may use to fund expansion and increase their runway. Overall, SaaS businesses can sell software at a greater price, more often, and for a longer period of time thanks to Capchase than they could previously.
Who is capchase for
Capchase, however targets Seed through Series C stage VC-backed B2B SaaS businesses. Estimated 6.5k businesses in the United States now meet this requirement, and millions of software-as-a-service businesses around the world with an average revenue of $1.8 million per year.
According to information from Pitchbook, the market's total spending amounts to around $11 billion, which translates to financing costs of about $1.7 billion.
Capchase will definitely work with a B2B SaaS firms and business around the world.
- Auditing functions
- Automating sign-up for products and services
- Managing documents, including file sharing and document collaboration
- Shared company calendars, which can be used for scheduling events
- E-mail services
- Customer relationship management and so on.
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How capchase work
Customers of Capchase make monthly payments against an upfront cost. For instance, if a SaaS provider signed a deal for $1,000 per month in revenue, Capchase would advance $10,500 on the first day and then collect $12,000 over the course of the subsequent 12 months.
On July 1st, 2020, the first Capchase client went live with a $25k contract size. The business has a working solution that can activate and manage contract finance as well as harvest data from clients for rating.
Interestingly, Capchase was placed second in the Southern European Stars pitch competition and was chosen as a finalist in the Pear VC pitch competition and Harvard MBA Fund pitch competition (out of 250 startups.)
Capchase was chosen from 400 candidates to participate in Pillar's Breakout program in Boston.
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Founders
The Capchase team has years of expertise in the technology, venture capital, and SaaS industries.
Miguel Fernández Larrea is a seasoned businessman who has co-founded Heydey Brands and Wibbou in the past. He graduated from Harvard Business School with an MBA.
Przemek Gotfryd has an MBA from Harvard Business School and formerly served on the Investment Team at Technology Crossover Ventures (TCV).
Luis Marqués served as Head of Product at Geoblink before becoming an advisor at Startup University Ventures. He is an INSEAD MBA graduate.
Ignacio Pubul is a member of Nova and a venture analyst at TheVentureCity. At GeoBlink, he had previously worked as a product manager.
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