The eCommerce investor Clearco, formerly Clearbanc, announced a new name and a new round of funding on Tuesday (April 20), bringing the company’s valuation into the neighborhood of $2 billion.
“To reflect its evolution from a source of efficient capital for founders to a broader platform of growth products and services, the company is rebranding as Clearco,” the company said in a news release, noting that it is also opening a $100 million Series C equity funding round.
“The move from Clearbanc to Clearco really signals our move beyond capital,” said Co-founder and President Michele Romanow. “We’ve invested US$2 billion in 4,500+ companies, and we’re building a product suite to support founders that goes far beyond funding, based on what they’ve told us they need most. Our new name reflects our broad commitment to partnering with founders to build thriving businesses.”
Clearco has touted its support for companies “outside traditional networks and regions.” In 2020, while global funding for female founders dropped by 27 percent, Clearco funded eight times as many female-led companies. Clearco also gave 13 percent of its funding to companies with Black and LatinX founders, compared to 2.6 percent for traditional VC firms. And while many VC firms concentrate funding on tech hubs like California, New York and Texas, Clearco says it has funded companies in all 50 states.
In order to fuel this growth, Clearco raised $100 million of equity and $250 million in debt. Oak HC/FT led the funding round, with Co-founder and Managing Partner Annie Lamont joining the board of directors.
New investors include executives from Stripe, Square, Affirm, Adyen, Robinhood, Betterment, Airbnb, Hubspot, AirWallex and Apple.
The new debt comes from Credigy (a National Bank subsidiary) at a substantially lower cost of capital, allowing Clearco to offer more competitive rates to its portfolio than any pay-as-you-grow financing company in history.
Selected by EFXA