Clearbanc Lands $70 Million for Its Alternative Startup Funding Platform
San Francisco-based Clearbanc, a startup that provides funding for marketing for rapidly-growing ecommerce brands, announced this week that it has closed $70 million in funding from multiple top venture capital firms including Emergence Capital, Social Capital, CoVenture and Founders Fund.
— Clearbanc (@clearbanc) November 12, 2018
According to the announcement, Clearbanc provides startup companies with $5,000 to $10 million or more in marketing capital in return for a capped revenue share deal.
Co-founded by Canadian entrepreneur and Dragons’ Den star, Michele Romanow, Clearbanc aims to fit into the investor landscape as a real alternative to venture capital rounds, as data shows that 40% of VC dollars invested in startups go directly to Google and Facebook for advertising. The company’s model democratizes access to capital while facilitating brand growth without founders losing equity ownership.
“This is a landmark year for us. We’ve funded over $100M in marketing capital for over 500 ecommerce brands already in 2018,” said co-founder and CEO Andrew D’Souza. “Clearbanc not only puts the power back in the hands of entrepreneurs — rather than investors and banks — but also plans to fund millions of small businesses globally instead of the small handful that most investors typically fund in a year.”
Additional participants in the round include Emergence Capital, 8VC, iNovia Capital, Real Ventures, Portag3, Precursor, WTI, Berggruen and FJ Labs.