Clearbanc, a Toronto-based provider of marketing capital for e-commerce brands, said it will supply $1 billion in growth funding through a new product, the 20-Min Term Sheet.
The product will support the rapid provision of $10,000 to $10 million of non-dilutive financing to 2,000 startups in the next 12 months.
Clearbanc said the 20-Min Term Sheet offers an alternative to entrepreneurs “pushing back against the traditional VC model for funding” and under-served markets.
Founded in 2015 by CEOs Andrew D’Souza and Michele Romanow, Clearbanc secured about $160 million (US$120 million) last year from a syndicate of venture capital firms.
Its investors include 8VC, Berggruen, CoVenture, Emergence Capital, FJ Labs, Founders Fund, Inovia Capital, Portag3 Ventures, Precursor, Real Ventures, Social Capital, Upper90 and WTI.
Photo: Andrew D’Souza and Michele Romanow, founders and CEOs of Clearbanc.
Clearbanc Launches 20-Min Term Sheet to Provide $1 Billion in Growth Capital to 2,000 E-Commerce Brands, No Equity, Board Seats or Controlling Interest Required
As the first and fastest way to get growth capital without losing board seats or controlling interest, the 20-Min Term Sheet will support 2,000+ companies in 2019 alone
TORONTO (April 3, 2019) – Clearbanc, a company that funds fast-growing e-commerce brands with non-dilutive marketing capital, today announces it will provide $1 billion dollars in funding powered by a first of its kind product, the 20-Min Term Sheet. With this launch, the company is aiming to invest in 2,000 companies in the next twelve months. To apply, visit 20mintermsheet.com and get approval on capital from $10,000 to $10 million in 20 minutes or less.
Across the U.S., a new breed of startup founders are pushing back against the traditional VC model for funding because to date, few funding options existed that didn’t entail giving up equity, or debt financing which can create a personal burden, such as losing a house if a business fails. At the same time, startups outside of VC hotbeds like Silicon Valley are massively underserved. 20-Min Term Sheet offers a more sensible path to ongoing capital as a business successfully scales, without the need to attend countless pitch meetings in the process.
Non-Dilutive Financing for Startups
Co-founded in 2015 by serial entrepreneurs Andrew D’Souza and celebrity angel investor Michele Romanow, Clearbanc supports the growth of 100 percent founder-owned and operated businesses, with non-dilutive access to capital to fund online advertising in exchange for a small percentage of revenues that spending generates.
The company’s new 20-Min Term Sheet provides financing to ecommerce or consumer SaaS companies that meet a minimum eligibility requirement of $10,000 average monthly revenue and at least six months of consistent revenue history. To sign up, please visit the Clearbanc microsite at 20mintermsheet.com and follow these easy steps:
• Manually enter your marketing and revenue data in the requested fields
• Once the information is filled out, simply click ‘submit form’ to begin processing
• The platform assembles an opinion based on financial health and revenue trajectory to decide if you qualify for an investment
• Clearbanc’s proprietary AI speeds up the diligence process by gathering data and completing confirmatory diligence within minutes allowing for same day funding
• A term sheet will be sent to your email inbox and on screen and you will be contacted by a representative to authenticate your information before any capital is assigned
• Upon signing the term sheet you can get capital from $10,000 to $10M in funding with a 6% flat fee that doesn’t compound or increase with time
“The 20-Min Term Sheet democratizes access to capital and connects e-commerce brands with the growth capital they need in minutes,” said Romanow Co-Founder, and President of Clearbanc. “We will use the speed of our new product to provide $1 billion in unbiased funding to 2000 brands in the next twelve months. We’ve designed it so that we are the most founder-friendly option with no loss of equity, time constraints or compounding interest.”
“Hands down Clearbanc was the best decision I made running my business. I am doing high six figures a year in monthly recurring revenue and I own 95% of my business,” said Nick Alt, CEO of VNYL, a vinyl record subscription company that operates out of California.
On the heels of the new product launch, Clearbanc continues to upend the traditional funding model and has already invested more than $150M in marketing capital for more than 500 e-commerce brands including Buffy.co, Teysha, Vinebox, Piglet, VNYL, Bokksu. In the next 12 months, the firm plans to invest $1 billion to 2,000 more e-commerce companies, leveraging its transactional speed and ability to scale as a new funding alternative for high-growth companies across the U.S.
For more information on Clearbanc or the 20-Min Term Sheet platform, please visit: 20mintermsheet.com
Clearbanc believes that selling equity to buy Facebook and Google ads is a bad deal for startups. This is why we’ve built an alternative for fast-growing businesses who generate consistent revenue from their marketing spend. Clearbanc offers funding from $10,000 to $10 million in exchange for a steady revenue share of their earnings until it’s paid back plus a six percent fee. We’ve already invested more than $150 million in 500 companies.
For more information see Clearbanc.com
VSC for Clearbanc