Investor enthusiasm for cloud software companies may have cooled from its heyday last year. But some investors believe there is money to be made in lesser-known startups.
Capchase, a New York-based company that lends to early-stage software startups, has raised $400 million in debt from lenders including i80 Group. The two-year-old startup will use the money to help subscription businesses improve their cash flow as equity funding dries up.
Early-stage software-as-a-service startups have seen a spike in venture funding during the pandemic, driven by the public market success of companies like Snowflake. Today, that capital is harder to come by as venture firms slow their investment pace — sending some startups to loan programs from companies like Capchase, Pipe and Founderpath.
https://www.theinformation.com/articles/the-bank-of-saas-has-400-million-more-to-lend
