Social Capital claims its CaaS initiative has exceeded expectations

Social Capital said interest in the Capital-as-a-Service initiative it launched a year ago has exceeded its expectations.

The firm, in a blog post, said it considered 5,000 applications for funding from entrepreneurs in 48 countries and approved 76 of them.

Social Capital, with its initiative, is one of a number of firms pushing hard on data-driven investing. Many have focused on deal sourcing and support, harnessing machine-learning-enabled analytics and expansive data sets.

Social Capital’s CaaS instead examines operational data from companies running on public clouds to understand the success they have turning prospects into customers. Entrepreneurs submit transactional data from their businesses into Social Capital’s CaaS system and funding decisions are made in hours.

VCJ Venture
Ashley Carroll, partner, Social Capital.

The firm said of the companies it funded, three have gone on to raise up rounds in subsequent financings, two have been the targets of M&A and one participated in a merger, according to the blog post from Partner Ashley Carroll.

“The fund is already out of the J-curve, which is quite rare one year into a (mostly) seed stage portfolio,” Carroll wrote. “In short, the demand and reception from entrepreneurs has exceeded our expectations.”

The goal of the system was to create a platform that would allow founders from around the world to bypass the friction of traditional fundraising. So far investments have been made in 24 countries with top sectors for companies including IT, healthcare and education.