Canadian revenue-based funding company Clearco has opened for business in Australia. The Toronto-based global firm has committed A$100 million to invest in Australian e-commerce businesses.
Capital, insights and advice for Australian startups
Clearco was founded as Clearbanc in 2015. The company offers capital solutions for e-commerce, mobile apps, software-as-a-service startups, scaleups and mature businesses. The company also offers data and insights, and access to a global network. It has invested more than US$2.5 billion into over 5,500 startups across 3 continents.
Clearco’s “founder-friendly” investment model is disrupting the way startups access capital. Unlike other VC firms, the company does not take equity in a business. Unlike banks, it doesn’t take personal guarantees. Instead, it charges a 6% flat fee, which the business pays back when it starts earning revenue.
Australia is Clearco’s third international market and its first Southern Hemisphere market. Australia is a vital part of the APAC region and the company’s first launch in the region.
‘[Australia has] a dynamic startup sector which is underserved in the revenue-based finance space,’ says Michele Romanow, Clearco’s President and Co-founder.
‘We’ve seen over 100 Australian startups valued at over $100 million or more. Companies like Canva and Afterpay are getting world stage play,’ says Dan Peters, Clearco Australia’s Managing Director.
‘Australia is going through an e-commerce and startup boom. This is partially accelerated by the pandemic but also driven by the global support of Australian innovation.
‘We believe many founders are often overlooked by VC firms and Australian banks,’ adds Peters. ‘We see a unique opportunity to build an Australian team, led by Australians, unearthing barriers for Australian founders.’
Clearco has already invested in Australian companies such as Beard Market, Vegan Grocery Store and Jolyn swimwear. E-commerce startups can get access to capital in 24–48 hours after applying to Clearco. Australia is an attractive market given its unique geographical location and local business focus.
How Austrade helped
Officials from the Australian Government in Canada have been proactive and helpful in providing local intel to help maximize Clearco’s launch in the region.
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