Canada's Clearco Secures $60M in Series D Round

Published 8 months ago

Toronto-based fintech firm Clearco has completed several transactions to recapitalize its business, strengthening its position as a leading capital growth provider for e-commerce businesses.

Clearco’s Recapitalization Efforts

The recapitalization initiatives include a $60M equity raise from existing investors and a new asset-backed financing facility, which provides up to $100M in financing capacity. This facility is expected to support $850M of Clearco originations over the next two years.

The $60M Series D round was led by Inovia Capital and Founders Circle Capital, who have been long-term investors in Clearco. Along with the fundraise, Clearco has also announced the closing of a new committed asset-backed facility from Pollen Street Capital, a leading global alternative asset management firm. Pollen Street’s facility will be used to fund revenue-based advances to e-commerce businesses approved for funding through Clearco’s AI-backed underwriting model.

Clearco’s New Era

This recapitalization marks a new era for Clearco, following a year of transformational change in technology, product, and management. The company’s actions enable it to continue supporting e-commerce businesses at a time when many companies face funding challenges. Clearco remains committed to the resilience and growth of the e-commerce industry and is dedicated to providing the capital and resources these businesses need to succeed.

Clearco’s Invoice Funding Product

Over the past year, Clearco has shifted its product focus towards a streamlined capital solution, Invoice Funding, offering predictable payment amounts and terms. Clearco utilizes AI and proprietary machine learning technology to underwrite businesses and assist customers with funding inventory and marketing invoices.

The company has funded over 10,000 e-commerce businesses so far, advancing over $2.5B to facilitate growth. Clearco customers can access between $10,000 and $2M in Invoice Funding with predictable payments over typically 4-6 months with no hidden fees. This product provides a stable source of working capital for companies looking to scale their operations and unlock cash flow.

Clearco’s Role in Small Business Financing

Clearco’s recapitalization comes at a pivotal time. Startups and specifically e-commerce businesses are facing numerous challenges, including reduced access to capital. Venture capital funding has fallen 48% in the first half of 2023, the lowest levels since pre-pandemic times, and banks continue to tighten lending to small businesses.

With limited access to capital, global economic uncertainty, and rapidly rising interest rates, many businesses have been forced to slow their growth. Clearco’s role in small business financing markets has become increasingly vital in this context.