Clearbanc

Clearbanc is a venture capital firm led by Michele Romanow that specializes in non-dilutive revenue-share agreements with start-ups. It is known for its "20-minute term sheet", offering equity-free investments in companies. Its CEO is Andrew D'Souza.[1]

It is a Canadian business founded in 2015, headquartered in Toronto. It partly uses Artificial Intelligence to make decisions on potential investments. As of August 2019 it invested in 791 businesses, has a stated monthly average revenue of $121 million and raised $1 billion.[2][3]

Unlike venture capital firms that require stock, Clearbanc takes a fee on investments up to $10 million. Businesses apply online, and its payback fees range from 6-12.5%.[4]

AI to determine funding

Clearbanc offers capital from $10,000 up to $10 million to entrepreneurs. Its proprietary AI system connects to a potential client's payment, ad and e-commerce platforms to analyze their business' financial health and revenue. Clearbanc's AI then reviews the data and automates the diligence process, effectuating a funding decision in potentially a matter of minutes. By only reviewing financial and marketing data, Clearbanc posits it is "able to remove the bias out of traditional VC funding", translating into more capital being extended to female founders "on their platform over the industry average".[5]

gollark: Should you just ban people from saying ANYTHING calculated to achieve an effect?
gollark: My mind isn't perfectly rational and unsusceptible or whatever. I'm just somewhat responsible for doing stupid things.
gollark: Although I don't think your justification is very reasonable - it's not remotely like coercing someone if you tell them to do something and it turns out that they have some sort of brain glitch which means they'll randomly unconditionally do it.
gollark: *You* haven't, I think, no.
gollark: Specific, LIMITED and well-defined ways.

References
  1. Zubairi, Amira. "Clearbanc Raises $67 Million CAD to Service Dramatic Spike in Interest from eCommerce Entrepreneurs". Betakit. Retrieved 4 August 2019.
  2. Clark, Kate. "Investors bet another $50M on Clearbanc's revenue share model". Tech Crunch. Retrieved 4 August 2019.
  3. Lisovetsky, Michael. "Can Facebook Advertising Work for Luxury Brand Startups?". AdAge. Retrieved 4 August 2019.
  4. Efron, Sarah. "Does this Dragons' Den star's financing startup Clearbanc live up to its lofty promises?". The Globe and Mail. Retrieved 4 August 2019.
  5. Ponce de Leon, Sandra. "Clearbanc Is Using AI To Level The Playing Field In Funding". Forbes. Retrieved 25 August 2019.
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