Clearco Secures $100 Million Debt Facility to Fuel Rescaling Efforts

As BetaKit first reported, Clearco has secured $100 million USD ($138.7 million CAD) in asset-backed debt financing provided by the Australian investment firm Macquarie Group. This marks the company's first such financing in several years and is intended to provide capital to its roughly 400 e-commerce and direct-to-consumer customers.

The move comes as the company attempts to "rescale" following a period of significant contraction. Founded in 2015 by Andrew D’Souza and Michele Romanow, Clearco once saw its valuation exceed $2 billion USD in 2021. However, BetaKit reports that worsening macroeconomic conditions in 2022 led to staff cuts, the abandonment of certain overseas markets, and a narrowed product suite. The company further struggled in 2023 with leadership changes, additional layoffs, and the collapse of Silicon Valley Bank, which necessitated a recapitalization and $60 million USD in equity funding.

CEO Andrew Curtis told BetaKit that the company has shifted its funding model; while Clearco previously took a cut of revenue, it now utilizes fixed weekly payments based on projected sales. Curtis noted that the new credit facility is vital because the cost of capital has dropped by 50 percent compared to 2023 levels.

According to reporting from The Logic, Clearco's headcount has plummeted to approximately 110—a fifth of its 2022 levels—though Curtis told BetaKit the current number is just under 100. Despite the downsizing, The Logic reported that Clearco has recently tripled its capital advances as entrepreneurs face difficulty securing funds from venture capitalists and banks. Public filings indicate the company also raised over $7.5 million CAD in convertible promissory notes from existing investors this year. Clearco anticipates hitting break-even by the fourth quarter of this year.