Capchase advances future recurring revenue as non-dilutive capital. Honest comparison with equity fundraising — when each fits and where they combine.
Capchase is often framed as an alternative to raising a round. It isn't — it's a complement. Non-dilutive revenue financing solves a different problem than equity.
Advances future contracted recurring revenue as upfront capital, repaid from the revenue stream. Priced as a discount rate, not equity dilution. Similar products from Pipe, Arc, and others in the space.
Bridging the gap between annual contract signing and cash collection. Extending runway without dilution when a round is 6+ months out. Financing customer acquisition when CAC payback is short and predictable.
Funding R&D with no near-term revenue attached. Multi-year bets before product-market fit. Any milestone that requires the runway certainty of cash-in-the-bank rather than a revolving facility. Equity buys time; revenue financing buys speed.
Discount rate typically 6-12% depending on customer quality, contract length, and churn history. No warrants or equity kickers on standard product. Cost of capital is real but honest — compare against equity dilution over the same period.
Most efficient stacks: raise equity for R&D and team, use Capchase-style facilities for GTM working capital. The blended cost of capital beats pure-equity funding once ARR is repeatable.
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