A company looking to convince startups to ditch VC funding in favor of taking out a loan just raised $1 billion
- Clearbanc has now raised a total of $1 billion in capital to fund startups.
- The company offers startups an alernative to raising funds through a venture capital firm, giving loans (that don't require an equity stake) with 6% interest that are repaid by taking a portion of the startup's revenue.
Clearbanc, a company that provides non-dilutive funding to startups as an alternative to VC funding, has closed $1 billion in capital (including the $120 million it disclosed last year).
The bottom line: "Today, 40% of VC dollars in companies are spent on Google and Facebook ads," Michele Romanow, co-founder of Clearbanc and an investor, tells Axios. "Founders are using the most expensive capital for this."