Capital, a Modern Alternative to Equity Financing, Launches with $100 Million to Fund Diverse Companies

NEW YORK, Oct. 30, 2019 /PRNewswire/ -- Capital, a New York-based provider of non-dilutive growth capital to fast-growing companies, today announced the launch of its online platform. Built to make the fundraising process more efficient, Capital gives entrepreneurs the ability to see their financing options and acquire funding in as little as one step. Starting today, Capital will fund over $100 million into companies through its automated investing solution called The Capital Machine, which underwrites a company's financial data and delivers financing offers for $5 million to $50 million in less than 24 hours.

Technology companies have long been considered high-risk investments, limiting the options and control entrepreneurs have during the fundraising process. After seeing how much founders were giving up when raising venture dollars, Capital designed a place where companies can go to see the viable financing options for their business and acquire the most efficient funding to grow without giving up equity ownership. Capital's first product, a modern venture debt alternative, replaces legacy offerings with larger checks, no warrants and no dilution for founders producing 2-9x more wealth for them at exit.

"Until now, company owners have been operating in the dark with little visibility into the inner workings of the investors they pitch and how those investors view their businesses," said Blair Silverberg, the CEO and Co-Founder of Capital. "With Capital, we're bringing information to the forefront by leveraging technology to streamline antiquated processes and equip companies with the right funding and information needed to build great businesses."

After a company uploads its financial information to Capital, The Capital Machine underwrites and benchmarks that data to determine which investment options are likely to be available to a company on the capital markets. It does this by computing a collection of analytics and insights that evaluate a company's historical capital allocation and cost of capital. A company's cost of capital is one of the foundational calculations used by investors to weigh an investment's potential. It is also the most important piece of information that a company owner can know to maximize the financial health of his or her company.

Capital delivers the entirety of its investment findings to companies with their financing terms to provide the kind of transparency that companies deserve during a fundraising process. Companies that accept financing terms from Capital gain access to Capital's analytics dashboard, which shows them how the funding being deployed generates value for their business. It also identifies improving business trends making new and increasingly cost-effective capital available to them over time.

"Capital is a modern investing alternative built to favor the entrepreneur," said Steve Jurvetson, Founder and Managing Director of Future Ventures and early investor in companies ranging from Hotmail to SpaceX and Tesla. "If you look at the trends in the flurry of failed IPOs and fundraisings this year, many could have avoided the pain and equity dilution if they understood their cost of capital earlier and opted for alternative financing options like venture debt. Blair and his team are expanding the confines of legacy investing to make understanding cost of capital and acquiring funding as easy as shopping for an airline ticket online."

Capital was founded in 2019 by Silverberg who spent over four years investing in early-stage businesses at Draper Fisher Jurvetson, along with his co-founders, Csaba Konkoly, an alternative investments expert, and technologist Chris Olivares. Capital's team of entrepreneurs, investors, engineers, and data scientists have helped grow companies ranging from Renaissance Technologies to Intel.AI to Goldman Sachs. Capital works with some of the world's most prominent institutional pools of capital to fund companies across a variety of industries and financing needs. Its operations are backed by Future Ventures, Greycroft, Wavemaker, Disruptive, as well as others.

About Capital: Capital is a modern alternative to equity financing built to put power back into the hands of the entrepreneur. Founded in 2019 by Blair Silverberg, Csaba Konkoly, and Chris Olivares to power entrepreneurship through equitable and transparent financing, Capital helps company owners understand their cost of capital and secure financing offers for $5 million to $50 million. The company is headquartered in New York City at the global intersection of technology and finance. For more information, visit http://captec.io.

CONTACT:
Courtney Klosterman
[email protected]  

SOURCE Capital