Andrew D'Souza: Clearbanc, Capital, and Canada
Episode: Andrew D'Souza: Clearbanc, Capital, and Canada
Pub date: 2019-02-25
My guest this week is Andrew D'Souza, the Co-founder and CEO of Clearbanc, a fundraising alternative to traditional venture capital. The company is based in Toronto and helps businesses fuel their marketing spend – because right now 40% of venture capital invested in companies goes directly to funding Facebook and Google ads. Equity is an expensive way for founders to fund repeatable growth and Clearbanc exists to solve that problem. Here's how it works – Clearbanc gives startups anywhere between $5,000-$10 million and in exchange Clearbanc typically receives a 5% to 10% revenue share of that company's earnings until the funding is paid back plus a 6% fee. Now here's the secret, Clearbanc picks merchants by developing technology that scans the merchants' Stripe payments and Facebook ads and that way they can assess the financial health and momentum of the company. In 2018, Clearbanc poured more than 100 million dollars into 500 companies.
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People mentioned:
- Chamath Palihapitiya
- Chip Wilson
- Tobi Lütke
- Sam Altman
- Paul Graham
- Stewart Butterfield
- Drew Houston
- Mike Krieger
Other mentions: