Clearbanc rebrands its way into a unicorn. The fintech company raises a $100 million Series C

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Clearbanc is the world’s largest e-commerce investor and company, revolutionizing how founders grow their businesses. Today it announced a rebrand and $100 million in new Series C funding to drive its ambitious growth plans. This brings the company’s valuation to nearly $2 billion.

To reflect the evolution from an efficient source of funding for founders to a broader platform of growth products and services the company has rebranded Clearco with proprietary algorithms that do not discriminate against gender, race, and region. Clearco stands out for its commitment and ability to motivate entrepreneurs outside traditional networks and regions.

While global VC funding for female founders dropped 27% in 2020, according to Crunchbase, Clearco funded eight times as many companies led by female founders as traditional VC firms during the same period.

That 13% of Clearco’s funds go to companies led by Black and LatinX founders, compared to 2.6% for traditional VC firms. Overall, a third of Clearco’s funds go to founders of color.

Why does Clearbanc Rebrand?

Clearco’s algorithm also “distributes wealth” geographically, while 80% of US general VC funding last year went to four states that used to be tech hubs. Clearco’s total for those states is 45%, and 55% goes elsewhere. Clearco has funded companies in all 50 US states, ten provinces of Canada, and three territories, including the United Kingdom. To date, 70% of the funds have gone to companies located outside of London.

Clearco raised $100 million and $250 million in debt in the Series C round to drive these plans, bringing the company’s valuation to nearly $2 billion. Oak HC/FT was led the round, and co-founder and managing partner Annie Lamont will join the company’s board. Lamont appears on the Forbes Midas list and has been a VC and investor for over three decades.

Some of the new investors include Founders Circle and executives from Stripe, Square, Affirm, Adyen, Robinhood, Betterment, Airbnb, Hubspot, AirWallex, and Apple as well as the new debt comes from Credigy (a subsidiary of National Bank). Clearco offers more competitive rates for its growing portfolio than any payout. As you grow a historic financing company, Clearco has raised over $170 million to date.

Clearco now offers an industry-leading suite of efficient financial products and services. Specifically tailored to help founders retain ownership, including:

Clearco Capital for Ecommerce Founders:

Clearco’s unique 20-minute worksheet offers $10,000 – $10 million in marketing growth funding for growing e-commerce founders.

Clearco Inventory Capital:

Clearco will buy your inventory. You then pay back when sold through at a price of +6%, which allows founders to pay off as they grow.

Clearco Runway for SaaS Founders:

Use data science and accurate business metrics to access up to 24 months of future earnings at a discounted price today. Fund growth, expand the runway, and grow faster to achieve higher valuations, keep capital and stay in control.

ClearValuation:

Advanced-Data Science Extends Clearco Products beyond Capital It provides founders with free valuation, insights, and advice to increase company value and connect with M&A investors and buyers.

ClearAngel:

ClearAngel is an early founder (who earns as little as $2,000 per month) access to revenue share information-based advice and Clearco’s extensive network of apps, agencies, and investors.

About Clearco:

Founded as Clearbanc in 2015 by Michele Romanow of Canada’s Shark Tank (Dragons’ Den), Andrew D’Souza, Ivan Gritsiniak, Charlie Feng, and Tanay Delima, Clearco offers the most founder-friendly funding solutions for 

  • Cryptocurrency
  • Mobile e-commerce
  • SaaS App 

Founder includes a complete product suite and access to a global network. Clearco has funded more than 4,500 companies, including Leesa Sleep, fashion rental service Le Tote, home goods company Public Goods, dressmaker UNTUCKit, online speaking training, Expressable, and digital real estate marketplace SetSchedule. 

Overview of the Clearbanc Rebrands:

After five years of undiluted financing for founders, Clearbanc is tired of being just a bank. So it’s rebranding and recently raised a $100 million Series C at a $2 billion valuation based on broad ambitions. The new valuation is five times larger than when Clearbanc closed its Series B in 2019.

Clearbanc has changed its name to Clearco, which aligns with the company’s long-term vision of providing data-driven solutions for founders Michele Romanow and Andrew D’Souza. D’Souza said that we are moving from being a provider of funds and a transactional relationship with our clients to a data-driven and our network, advice, and funds to become a long-term partner. In other words, Clearco wants its founders to think of the company as more than a check machine.

Today’s news is far from what Clearco defined two years ago: a 20-minute semester worksheet, the product of perhaps the most well-known in tech. This allows e-commerce companies to increase their non-diluted marketing capital between $10,000 and $10 million based on revenue and advertising costs. So the founders quickly adjusted their use of capital based on the data. And to date, Clearco has invested more than $2 billion in more than 4,600 companies as per mascarenhastechcrunch.

“We can effectively fund you. But then we can help you figure out what to do with that capital to grow your business and add value, and that’s a big part of the rebranding motivation,” says D’Souza.

Clearco launched a new product last year. In April 2020, Clearco launched ClearRunway to help SaaS founders secure their undiluted capital repayments through revenue-sharing agreements. A few months later, in July, Based on internal benchmarks and metrics, founders found ways to value their companies.

In October, Clearco launched a tool to pre-purchase company inventory directly from suppliers and then get a refund when the product is sold.

In February, The Company has announced that it had created Clearangel, a product that is similar to a 20-minute document but focused on low-income founders. Growth doesn’t come without challenges.

In April 2020, the same month that ClearRunway was launched, Clearco laid off 8% of its employees, or 17 people. The company said it would write more careful, more frequent checks.

At the time, it gave $1 billion to 2,200 companies. So far, it has sent $2 billion to 4,500 companies, a mix of startups and online businesses.

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