Clearbanc

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Clearco is a lending 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, Clearco 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[]

Clearco 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. Clearco'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, Clearco 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]

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