The company is based in Toronto and has secured the funding of $300 million till now. The latest funding round was led by Highland Capital with additional investments from Arcadia, iNovia and Emergence Capital.
The company has not shared its current valuation, but mentioned that it wasn’t “forced to raise” any money, so the funds were “raised on terms that [they] liked.”
Clearbanc provides an alternative to venture capital funding by proffering non-dilutive revenue-share contracts. It uses machine learning and data to make quick decisions about possible investments and aims to back 2,000 companies by next year.
The company’s latest campaign is called the “20-Min Term Sheet,” whereby Clearbanc invests somewhere between $10,000 and $10 million for eCommerce companies that have positive unit economics.
Clearbanc charges 6 percent on its capital and will collect some of a company’s revenue until the investment is paid back. It has invested in 791 online companies this year, which include Le Tote, UNTUCKit, Leesa Sleep and Public Goods. Clearbanc said its investments bring in around $121 million in revenue every month.
“The 20-minute term sheet was our take on showing the market how fast we could get startups access to capital,” said Clearbanc Co-founder and President Michele Romanow.
He also added, “Founders don’t need to go and pitch their life story,” noted Clearbanc Co-founder and CEO Andrew D’Souza. “They don’t need to spend hours and hours on due diligence, and they don’t need to get on a flight and meet VCs in person – we’ve automated all of that.”