Clearbanc is disrupting startup funding by loaning companies cash to buy ads in exchange for a revenue share so they don’t have to sell as much equity to venue capitalists. That idea has proven so appealing that 1000 companies seeking up to $1 billion total hit up Clearbanc since we reported it raised $70 million last month. So to meet the demand of the most eligible startups asking for marketing cash, Clearbanc has just raised a $50 million fund from Seamless co-founder Jason Finger’s new firm Upper90.
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 to pour fuel on the fire. Startups invest that into ad spend, and then split the revenue with Clearbanc from the sales triggered by those ads. Essentially, Clearbanc offers an alternative to selling valuable equity and control to venture capitalists by offering loans based on new data sources traditional banks aren’t looking at.