Clearbanc is disrupting startup funding by providing companies cash to buy ads in exchange for a revenue share so they don’t have to sell as much equity to venture capitalists.
towards this endeavor, Clearbanc has just raised a $50 million fund from Seamless co-founder Jason Finger’s new firm, Upper90.
This latest funding comes just a month after Clearbanc raised $70 million for the same purpose.
If a company’s Facebook ads and Stripe sales metrics show it’s a sure bet, Clearbanc can provide $5,000 to $10 million in funding for ads.
Startups invest that into ad spend, and then split the revenue with Clearbanc from the sales triggered by those ads until it’s paid back, plus six percent. Essentially, Clearbanc offers an alternative to selling valuable equity and control to VCs by offering capital based on new data sources traditional banks aren’t looking at.
“In 2018, Clearbanc has funded over $100 million into 500 different companies.