Capital raises $9 mn to enhance its AI-based ‘The Capital Machine’

By Pavithra R

Capital, a leading innovator in the emerging category of “capital as a service” (CAAS), has announced that the company has raised an additional $9 million in seed funding led by Jerry Yang’s AME Cloud Ventures.

The investment round saw participation from Steve Jurvetson’s Future Ventures, Wavemaker Partners, Partech, Greycroft, and renowned angel investors including Rentech and First Round Capital’s, Howard Morgan and Stuart Roden, the former Chairman of Lansdowne Partners.

“We founded Capital because we wanted to solve a massive problem in the fundraising process, which my own portfolio founders faced when I was a venture capitalist at Draper Fisher Jurvetson. The traditional fundraising process takes too long, is opaque to founders and early owners, and can be subject to biases. We believe that Capital offers a better way forward, with a fairer, faster, and more transparent private market process for accessing capital based on AI and direct business data,” said Blair Silverberg, CEO of Capital.

Capital, with over $14M in seed funding and $100M in the balance sheet, is planning to use the finance to develop its AI-based The Capital Machine and expand its efforts to empower companies to understand their current capital stacks better and make optimal fundraising decisions. Currently, The Capital Machine is powering fundraising for a network of businesses with aggregate annual sales of over $3 billion. The platform swiftly ingests gigabytes of complex company data, yielding a transparent, benchmarked, and predictable view of fundraising that is 100x more efficient than the existing process relying on human analysts, auditors, and spreadsheets.

Capital is at the centre of several key trends in FinTech and machine learning. The company is offering a tech-first approach to institutional capital raising, making the fundraising process faster and transparent for sophisticated companies with more than $5 million of revenue, whether venture-backed or bootstrapped.

Financial Solutions Lab receives $10 mn funding & support from Prudential Financial.

“Capital is doing something that is unprecedented in the private capital world. Until now gaining access to large, sophisticated private financing has been a very manual and antiquated process. With the use of AI, classification algorithms and machine learning techniques Capital can help founders understand their true cost of capital and avoid suffering excessive dilution in order to scale,” said Nick Adams of AME Cloud Ventures.

Founded in 2019, Capital is a modern alternative to equity financing built to put power back into the hands of the entrepreneur.