CAN Capital announced $33 million in funding led by Meritech Capital Partners (Meritech) with increased participation and ownership from existing investor Accel Partners (Accel). Meritech and Accel were joined in the funding round by Ribbit Capital (Ribbit) and QED Investors (QED). Nigel Morris, managing partner at QED, also serves as Vice Chair of CAN Capital’s Board of Directors. Ribbit and QED also significantly increased their ownership stakes in the company. CAN Capital will use the funds to expand and accelerate the growth of its small business finance offerings.
“Ensuring that small businesses continue to get access to capital remains a mainstream issue and a core focus for CAN Capital, especially as these businesses are among key drivers of economic growth,” said Daniel DeMeo, Chief Executive Officer of CAN Capital. “We’re committed to helping these businesses grow, and while we are well capitalized, this round of funding allows us to further enhance our product offerings to continue meeting our customers’ needs. We are grateful to our investors and excited about cultivating our new Meritech relationship, as well as our ongoing collaboration with Accel, QED and Ribbit.”
CAN Capital uses its own real-time platform and risk scoring models to assess and facilitate the provision of capital to SMBs in the U.S. and Latin America. The company has provided access to $3.6 billion in capital to SMBs, representing roughly 123,000 distinct small business finance transactions.
“CAN Capital’s unique risk model and its highly-effective underwriting engine have allowed the company to serve small business owners that have difficulty working with traditional capital sources,” said Mike Gordon, Managing Director at Meritech. “These capabilities have allowed the company to grow exponentially and we see it as a key player in the small business finance industry that is well-positioned for future growth.”
“CAN Capital was probably the best-kept secret in the emerging financial innovation boom. The company created the alternative SMB finance space and is growing rapidly,” said Kevin Efrusy, General Partner at Accel and existing member of CAN Capital’s Board of Directors. “One should be wary of those with loud megaphones, but weak balance sheet results. CAN Capital is not only profitable, but the company is the revenue, market share and innovation leader in the space. We are delighted to significantly deepen our commitment to this fantastic team and company.”
CAN Capital (formerly Capital Access Network) is the largest, most experienced company providing small businesses with access to alternative capital. CAN Capital operates profitably with a $460 million line of credit from a syndicate of leading banks, including Goldman Sachs, Wells Fargo Capital Finance LLC, Capital One, Fifth Third Bancorp, Brown Brothers Harriman, Key Equipment Finance, Amalgamated Bank, Regions Bank, CapitalSource and AloStar as well as equity capital from Accel Partners and Meritech Capital Partners.
Meritech Capital Partners is a leading provider of late-stage venture capital to category-defining private technology companies, and has been one of the top performing venture firms of the past decade. With over $2.6 billion under management, Meritech primarily leads investments into companies with proven and differentiated technology, rapidly-growing revenue and experienced management teams.
Founded in 1983, Accel Partners has a long history of partnering with outstanding entrepreneurs and management teams to build world-class businesses. Accel today invests globally using dedicated teams and market-specific strategies for local geographies, with offices in Palo Alto, California, New York City, London, and Bangalore, as well as in China via its partnership with IDG-Accel.