Clearbanc becomes Clearco and announces US $ 100 million Series C financing
Pay as you grow The finance pioneer is approaching US $ 2 billion Evaluation
The proprietary AI-based platform funded 8 times more female founders than the typical VC; 30% of funded founders are people of color
NEW YORK and TORONTO, April 20, 2021 / PRNewswire / – Clearbank, the world’s largest investor in e-commerce and the company that is revolutionizing the way founders grow their businesses, today announced a rebranding and $ 100 million in a new Series C equity financing to fuel the company’s ambitious growth plans, bringing the company’s valuation to almost $ 2 billion.
To reflect its evolution from an efficient source of capital for founders to a broader platform of growth products and services, the company is rebranded as Clearco. With proprietary algorithms that are gender, race and region independent, Clearco is unique in its commitment and ability to fuel entrepreneurship outside of traditional networks and regions. As global venture capital funding for female founders fell 27% in 2020, according to Crunchbase, Clearco has funded eight times as many founder-led companies as traditional venture capital firms. During the same period, 13% of Clearco’s funding went to companies led by founders Black and LatinX, compared to 2.6% for traditional VC companies; in total, a third of Clearco’s funding went to color founders.
“The move from Clearbanc to Clearco really marks our move beyond capital,” said co-founder and president Michele Romanow. “We have invested US $ 2 billion in over 4,500 companies, and we’re building a suite of products to support founders that go beyond funding, based on what they tell us they need most. Our new name reflects our overall commitment to work with the founders to build successful businesses. “
In addition, Clearco’s algorithms “distribute wealth” geographically. While 80% of typical US venture capital funding last year went to four states that have traditionally been technology hubs (California, Texas, new York and Massachusetts), Clearco’s total for those states was 45%, with 55% going elsewhere. Clearco has funded companies in all 50 US states and ten Canadian provinces and three territories, as well as in the UK, where 70% of funds to date have gone to outside companies. London.
“Our goal is to change the face of fundraising, and we’re really proud to show that it can be done,” said Romanow.
To fuel these plans, Clearco has raised US $ 100M equity and US $ 250 million of debt in a Series C cycle which brings the valuation of the company to close to $ 2 billion. Oak HC / FT led the round and co-founder and managing partner Annie lamont will join the company’s board of directors. Lamont appeared on the Forbes Midas list and has been a VC and investor for over three decades. New investors include Founders Circle and executives from Stripe, Square, Affirm, Adyen, Robinhood, Betterment, Airbnb, Hubspot, AirWallex and Apple. The new debt comes from Credigy (a subsidiary of National Bank) at a significantly lower cost of capital, allowing Clearco to offer more competitive rates to its growing portfolio than any other salary as it grows. the growth of the finance company in history. To date, Clearco has raised more than US $ 170 million equity.
“With US $ 2 billion Deployed to over 4,500 founders, we’ve proven that we can find and fund entrepreneurs using machine learning and AI in a much more equal manner, and we’re happy the investment community is seeing it, ”said the co-founder and CEO Andrew D’Souza. “We are also delighted to welcome Annie to the Clearco Board of Directors. Her 30 years of business and investor experience makes her the ideal person to join us at this inflection point and work with our management team to develop our business and our brand. “
“Oak HC / FT is delighted to partner with the market leader in alternative finance,” said Lamont. “We strongly believe in Clearco’s mission to democratize access to capital, and we are excited to see this next phase of growth.”
Clearco now offers a line of industry-leading performance finance products and services, tailored to help founders retain ownership, including:
- ClearCapital for e-commerce founders – The 20-minute contract, signed by Clearco, offers marketing growth capital of $ 10,000–$ 10 million for growing e-commerce founders.
- ClearInventory Capital – Clearco will buy your inventory and then pay it back as it sells for a cost of + 6%. This allows founders to pay as they grow.
- ClearRunway for the founders of SaaS – Uses data science and real business metrics to access up to 24 months of future income at a reduced amount today. Finance growth, expand the trail, and grow faster to achieve higher valuation, keep equity, and stay in control.
- ClearValuation – Advanced data science extends Clearco’s product beyond equity, providing free founders’ assessment and ideas and recommendations to increase the value of their business and connect with M&A investors and buyers.
- ClearAngel – ClearAngel gives early stage founders (with so little $ 2,000 monthly income) access to equity income, data-driven advice and Clearco’s extensive network of applications, agencies and investors.
“Recovering from the COVID-19 pandemic will take all of our best minds. Clearco has supported the founders from the onset of the pandemic and looks forward to stepping up that support,” D’Souza said. “We are proud that the technology we have developed identifies promising companies, regardless of the founder or where they live, and we look forward to working with them to get the global economy back on track.
Co-founded as Clearbanc in 2015 by Michele Romanow of From Canada Shark chariot (dragons’ lair), Andrew D’Souza, Ivan Gritsiniak, Charlie feng, and Tanay Delima, Clearco offers the most user-friendly investment solutions for e-commerce founders, mobile apps, and SaaS founders, along with a full range of products and access to a powerful global network, information, data and recommendations. Clearco has funded more than 4,500 companies to date, including Leesa Sleep, fashion rental service The Tote, Home Goods Company, Public Goods, Manufacturer of UNTUCKit Shirts, Expressable Online Speech Therapy Practice, and SetSchedule Digital Real Estate Market. For more information, visit clear.co and @getClearco.
About Oak HC / FT
Founded in 2014, Oak HC / FT is the premier private equity venture capital fund investing in Healthcare Information & Services (“HC”) and Financial Services Technology (“FT”). With $ 3.3 billion in Assets Under Management, we focus on driving transformation in these industries by providing entrepreneurs and businesses with strategic advice, board participation, execution of business plans and access to our extensive network of industry leaders. Oak HC / FT is headquartered at Greenwich, CT, with offices in Boston and San Francisco. Follow Oak HC / FT on Twitter, LinkedIn and Medium.