Capital, a leading innovator in the emerging category of “capital as a service” (CAAS), announced that it has closed on an additional $9Million in seed funding led by Jerry Yang’s AME Cloud Ventures with participation from Steve Jurvetson’s Future Ventures, Greycroft, Wavemaker Partners, Partech, and renowned angel investors including Rentech and First Round Capital’s, Howard Morgan and Stuart Roden, the former Chairman of Lansdowne Partners. With over $14M in seed funding and $100M in balance sheet raised to date, Capital will use the new funds to further develop its AI-based The Machine and expand its efforts to empower companies to better understand their current capital stacks and make optimal fundraising decisions.
“We founded Capital because we wanted to solve a massive problem in the fundraising process, which my own portfolio founders faced when I was a venture capitalist at Draper Fisher Jurvetson,” said Blair Silverberg, CEO of Capital. “The traditional fundraising process takes too long, is opaque to founders and early owners, and can be subject to biases. We believe that offers a better way forward, with a fairer, faster, and more transparent private market process for accessing capital based on AI and direct business data.”
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“Capital is doing something that is unprecedented in the private world,” said Nick Adams of AME Cloud Ventures. “Until now gaining access to large, sophisticated private financing has been a very manual and antiquated process. With the use of AI, classification algorithms and machine learning techniques can help founders understand their true cost of capital and avoid suffering excessive dilution in order to scale.”
Capital is at the center of several key trends in fintech and machine learning. Several fintech platforms in recent years have been offering online lending to SMBs, with many of the companies struggling in the aftermath of the COVID-19 crisis. Capital is offering a tech-first approach to institutional raising for the first time, making the fundraising process faster and more transparent for sophisticated companies with more than $5M of revenue, whether venture-backed or bootstrapped.
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