29 June 2023 |

Learn About Capchase’s $100M Initiative to Fund Women and Minority-Led Startups


In a world that often feels like it’s stuck on repeat, where traditional venture capital funding remains heavily skewed towards a select few, fintech company Capchase is turning the tide.

In case you don’t know, Capchase provides financing solutions for Software-as-a-Service (SaaS) companies and is making waves with its 2021 initiative to provide non-dilutive capital to women- and minority-led startups. 

And guess what? 

They’ve just hit a major milestone, deploying over $100 million in funding over the past two years to these underserved groups. 

Why does this matter? 

Let’s face it, the funding landscape for founders who identify as women or people of color has never been a level playing field. 

And with the economic downturn in 2022 further exacerbating the problem, the odds were stacked against them. 

Just take a look at the numbers: in the U.S., a measly 2% of total venture capital funding during 2022 went to women-founded startups, while minority-founded companies received a paltry 1.8% of the pie. 

And it’s not just a U.S. issue; our friends across the pond in Europe didn’t fare much better, with women-only teams snagging a mere 1% of total capital in 2022 and minority-founded startups managing a meager 0.7%.

But fear not, dear readers, for Capchase – among other industry leaders like VC firms Anthemis and Fiat Growth, has stepped up to the plate, ready to tackle this imbalance head-on. 

In my conversation with Miguel Fernandez, the co-founder, and CEO of Capchase, on Humans of Fintech (listen here), he shared how he knows that global venture capital funding has taken a nosedive, leaving startups of all kinds stranded.

However, he firmly believes achieving equality in technology is a team effort

In his words, “We all have a role in improving equality, and providing women- and minority-founders with the funding they need to grow is one of the areas where we knew we could help.”

How Does Capchase Help Fund Women?

Capchase uses its proprietary AI technology to cut through the bias typically found in traditional funding processes. 

No more playing favorites based on appearances or connections. Capchase looks at the cold, hard numbers: revenue, subscription, and financial data

It’s all about giving every founder, regardless of their background, an equal shot at securing funds and scaling their businesses while retaining their equity. It’s like a breath of fresh air in a stale room, a glimmer of hope for those who’ve been left out in the cold.

And let’s not forget the success stories that have emerged from these underrepresented founders. 

Female-founded startups have proven their mettle, maintaining a lower median burn rate than their male counterparts. This is a crucial metric for gauging startup health, longevity, and growth, especially in a world where capital is harder to come by. 

The numbers don’t lie, my friends. Capchase’s $100 million initiative has struck gold, and the evidence supports their cause.

Flora Azucena, CEO and founder of Alchemy Vision, can vouch for the impact initiatives like this have made. 

As an immigrant, woman, and founder, she knows the struggle all too well

It’s no secret that funding can be more difficult to receive,” Azucena said in the announcement. “Capchase understands that deploying capital to diverse founders can create greater opportunities for individuals and innovation.” 

Thanks to the financing provided by Capchase, Azucena and her team at Alchemy Vision can focus on their noble mission of supporting patient care and practice growth, while Azucena herself aims to teach, lead, and inspire the medical staff providing that care.

The journey doesn’t end here, folks. Capchase is not resting on its laurels just yet. 

Their system determines eligibility and draws amounts based on startup fundamentals and scenario analysis. It’s a fair and transparent process that ensures all founders have an equal shot at securing the funds they need to thrive.

As the tides continue to turn, this is a great example of choosing to be a part of the paradigm shift, riding the wave of change, and empowering founders who have historically been overlooked.

IMO, it’s refreshing to see a company like Capchase leading the charge in bridging the funding gap. In a world where innovation knows no boundaries and talent comes in all shapes, sizes, and backgrounds, it’s high time we level the playing field. 

Kudos to Capchase for recognizing the untapped potential in underrepresented founders and providing them with the financial support they need to turn their visions into reality.

We welcome a new era of inclusivity and opportunity as we bid adieu to traditional funding processes marred by bias and inequality. When we invest in diverse voices, we unlock a world of innovation and progress.

So, here’s to the trailblazers of the startup funding landscape. May their $100 million milestone catalyze change, inspiring other players in the industry to follow suit