Total amount raised
$858.6 Millions
Latest funding date
10/1/2023
Location
Clearco has successfully raised significant funding over multiple rounds, establishing itself as a key player in the ecommerce funding space. The platform offers innovative financial solutions tailored to the needs of ecommerce businesses, providing working capital for invoices, marketing, and more.
Keep reading to explore the intricacies of Clearco's fundraising journey and the investors backing this dynamic platform.
What Is Clearco?
Clearco, founded in 2015, is headquartered in Toronto, Canada. The company was established by Michele Romanow, Andrew D'Souza, Ivan Gritsiniak, and Charlie Feng. Clearco specializes in providing non-dilutive capital solutions to ecommerce businesses, helping them fund invoices, marketing, and other operational needs.
With a mission to support entrepreneurs without requiring equity or collateral, Clearco has become a significant player in the ecommerce funding space. The company offers fast and flexible funding options tailored to the unique needs of online businesses.
Clearco employs a team of over 300 professionals dedicated to empowering ecommerce entrepreneurs. Their innovative approach and commitment to customer success have made them a trusted partner for many growing businesses.
How Much Funding Has Clearco Raised?
- Series A
- Amount Raised: $70M
- Date: November 2018
- Lead Investors: Emergence Capital, Social Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand Clearco's market presence and enhance its product offerings.
- Series B
- Amount Raised: CA$65M
- Date: July 2019
- Lead Investors: Highland Capital Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and support more ecommerce businesses.
- Venture Round
- Amount Raised: Not disclosed
- Date: June 2020
- Lead Investors: Not disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue growth and support during the COVID-19 pandemic.
- Series C
- Amount Raised: CA$125M
- Date: April 2021
- Lead Investors: Oak HC/FT
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand product offerings and enter new markets.
- Debt Financing
- Amount Raised: CA$313M
- Date: April 2021
- Lead Investors: Nestle China, Oak HC/FT
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide more flexible funding options for ecommerce businesses.
- Series C
- Amount Raised: $215M
- Date: July 2021
- Lead Investors: SoftBank Vision Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and enhance technology infrastructure.
- Convertible Note
- Amount Raised: $17.1M
- Date: October 2022
- Lead Investors: Not disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support ongoing operations and product development.
- Series D
- Amount Raised: $60M
- Date: October 2023
- Lead Investors: Founders Circle Capital, Inovia Capital
- Valuation at Round: $200M
- Motivation Behind the Round: To recapitalize and support the growth of ecommerce businesses.
- Debt Financing
- Amount Raised: $100M
- Date: October 2023
- Lead Investors: Pollen Street Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide additional financing capacity for Clearco's operations.
Clearco has raised a total of $827.1M in funding. The current valuation is $200M.
Key Investors
- Inovia Capital
- Details: Inovia Capital is a venture capital firm that has been a significant backer of Clearco. They led the $60 million Series D funding round.
- Investment Focus Areas: Technology, innovation-driven companies, growth-stage companies.
- Notable Investments: Lightspeed, Snapcommerce, Bench.
- Founders Circle Capital
- Details: Founders Circle Capital specializes in providing growth capital to high-growth technology companies. They co-led the Series D funding round for Clearco.
- Investment Focus Areas: Technology, growth-stage companies, operational improvements.
- Notable Investments: Not publicly disclosed.
- Pollen Street Capital
- Details: Pollen Street Capital is a global alternative asset management firm. They provided a new asset-backed financing facility to Clearco.
- Investment Focus Areas: Financial services, business services, alternative asset management.
- Notable Investments: Not publicly disclosed.
- SoftBank Vision Fund
- Details: SoftBank Vision Fund is one of the largest technology-focused investment funds globally. They led the $215 million Series C funding round for Clearco.
- Investment Focus Areas: Technology, artificial intelligence, robotics.
- Notable Investments: Uber, WeWork, ByteDance.
- Highland Capital Partners
- Details: Highland Capital Partners is a venture capital firm that invests in early and growth-stage companies. They led the CA$65 million Series B funding round for Clearco.
- Investment Focus Areas: Technology, healthcare, consumer products.
- Notable Investments: 2U, Rent the Runway, Malwarebytes.
What's Next for Clearco?
Clearco's future is brimming with opportunities, particularly in expanding its Invoice Funding product. With $60 million raised in Series D funding and a $100 million asset-backed facility, the company is poised to support $850 million in originations over the next two years. Leveraging AI and machine learning, Clearco aims to streamline capital solutions for e-commerce businesses, offering predictable payment terms and amounts.
Future fundraising opportunities are likely as Clearco continues to demonstrate growth and stability. The company’s focus on achieving cash flow break-even within the next 12 months could attract further investment. However, challenges such as economic uncertainty, rising interest rates, and competition from other fintech companies may pose hurdles. Clearco's ability to navigate these challenges will be crucial in maintaining its growth trajectory.
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