If you were a start-up 10 years ago, the funding landscape looked very different. Unless you were a large company, getting banks to look at you was exceptionally challenging. After all, their primary job was to mitigate risk. More recently, Venture Capital began to take a bigger role, providing funds in exchange for a percentage of the company and often a board seat. And this route has worked for many, but it doesn’t work for all. In many scenarios, VCs are often looking for ‘home runs’ and won’t always see the potential of every company – plus the cost of equity can be expensive, not just in terms of dollars but also company dilution.
This is where ‘Capital-as-a-Service (CaaS)’ comes in. In exchange for a percentage of monthly revenue, companies can get the funds they need to grow their business. CaaS companies, like Corl, have a clear understanding of needs for capital injection, whether it’s increasing inventory, expanding marketing efforts, or growing headcount, businesses need upfront investment to set themselves up for success.
Corl believes that companies should have access to growth capital that is fair, fast, and flexible. They use a proprietary AI software to analyze their financials to give businesses an initial assessment –it takes just 10 minutes to complete and less than 24 hours to find out if they qualify for financing. With preferential rates and flexible repayment plans, CaaS companies are making growth capital a more attractive option for businesses that operate in the digital economy.
This type of growth capital is well-suited to Software-as-a-Service, e-commerce, and other technology companies that need quick non-dilutive capital to grow, such as tech-enabled HR consulting firm Bridger. After taking capital for Corl, they increased their customer base by 170% and revenue by 136%.
Just a couple years in and with over $35 million in capital deployed, Corl is continuing to grow. They just announced a raise of $20 million USD from NAOS Finance –a major and well-established DeFi investment company that has worked with top technology companies from across the globe. This capital will be used to finance more businesses seeking revenue-based financing in North America.
Kevin Tseng, Founder of NAOS Finance, commented: “We’re thrilled to partner with Corl to provide alternative financing solutions for start-ups globally. NAOS and Corl have a shared vision that businesses should not have to undergo lengthy funding process required by the existing financial establishments.”
Tech companies today have a very different reality than start-ups of years before. Access to capital can now be fast and easy. And, giving up equity or personal guarantees are no longer requirements – if you know where to look.
Learn more about revenue-based financing at Corl.io.