Clearco

Founded in 2015 (originally as Clearbanc), Clearco has established itself as a pioneering force in revenue-based financing specifically designed for digital businesses. Unlike traditional venture capital firms that typically require equity in exchange for funding or conventional banks that rely heavily on personal guarantees and credit checks, Clearco takes a fundamentally different approach. They've developed a data-driven investment model that evaluates businesses based on their digital performance metrics and revenue potential rather than the founder's personal credit history or ability to pitch effectively. This approach has disrupted the traditional funding landscape, particularly for eCommerce brands, SaaS companies, mobile apps, and other digital businesses that often struggle to secure appropriate financing through conventional channels despite having strong underlying business metrics.

What distinguishes Clearco in the alternative financing landscape is their proprietary "20-minute term sheet" process that leverages AI and data science to make objective funding decisions. By connecting to a business's revenue platforms, payment processors, and marketing accounts, their algorithm analyzes over 100 performance metrics—including customer acquisition costs, revenue growth, inventory turnover, and return rates—to determine funding eligibility and amounts in a fraction of the time it would take a traditional lender or investor. This data-first approach not only accelerates the funding process but also eliminates many of the biases inherent in traditional financing methods. In fact, Clearco has funded significantly more women-led businesses than the venture capital industry average and invests across a more geographically diverse range of founders, demonstrating how their objective, metrics-based approach helps level the playing field for entrepreneurs regardless of background, network, or location.

Clearco provides funding ranging from $10,000 to $10 million through their revenue-share agreement model, where businesses repay the advance plus a flat fee through a percentage of their daily revenues until the total amount is repaid. The application process is entirely online and remarkably streamlined, typically delivering funding decisions within 48 hours and capital within days for approved businesses. Unlike loans, there are no fixed payment schedules, interest rates, or late fees—payments automatically adjust based on the business's daily revenue performance, expanding and contracting with natural business cycles. This alignment with revenue patterns makes Clearco's financing particularly well-suited for seasonal businesses or companies experiencing rapid but unpredictable growth. For digital entrepreneurs seeking growth capital without the dilution of equity financing or the rigid requirements and personal risk of traditional loans, Clearco offers a flexible, performance-based alternative that scales with their business success.