Escalate Capital Partners is a venture lending firm that provides structured debt to late-stage companies. Escalate has invested over $2 billion in more than 500 companies, since their founding almost 20 years ago. (Source - August 2022).
About Escalate Capital Partners
Escalate Capital Partners was founded in 2005 and is headquartered in Austin, Texas with a satellite office in Campbell, California. It is a privately-held firm. Escalate Capital Partners targets rapidly-growing late-stage companies within the technology, software, services, and healthcare sectors.
Escalate Capital Partners announced its first fund in 2005, “Escalate I.” It announced the close of its fourth fund, “Escalate Capital IV,” in October 2019.
Eligibility and Products Offered
Escalate Capital Partners provides venture debt products to late-stage venture companies. It provides debt capital that can be used similarly to equity capital. Typically, they only lend to growing companies that have exhibited success in the marketplace.
Loans are typically used for growth capital and to augment equity funding with less dilutive capital. Loans provided by Escalate are repaid before equity investors receive a return on their investment.
To be eligible, companies must be in the SaaS, technology, or healthcare sectors. Featured investments by Escalate Capital Partners include Accolade, Arcadia, bswift, everspring, HomeAway, LiveIntent, Phreesia, RetailMeNot, SailPoint, ThreatQuoteint, Virtustream, and Workfront.
How to Apply
To apply, interested companies should contact the corporate office in Austin. Contact information is listed on their corporate website (Source - August 2022).
Capchase vs. Escalate Capital Partners
In addition to financing using venture debt from Escalate Capital Partners, founders and startups can work with Capchase. When compared to Escalate Capital Partners, Capchase’s funding model is designed to remove excess fees that can save clients up to 50% when compared to traditional venture debt providers (Source – June 2022).
It can be helpful to see the differences between Capchase and Escalate Capital Partners side-by-side. This is especially true for key areas like speed to funding, flexibility, structure & fees, and value add.
Speed
Capchase
24 hours to underwrite (led by a tech-driven & highly responsive underwriting system)
Escalate Capital Partners
Often an extended diligence process
Flexibility
Capchase
Highly Flexible: No traditional financial covenants on amounts financed
Escalate Capital Partners
Fairly flexible: No minimum net worth, working capital, current ratio, quick asset ratio, liquidity ratio, or debt-to-equity ratio is required to apply
Structure & Fees
Capchase
Transparent & Simple: No prepayment fees, closing fees, warrants, or hidden fees
Escalate Capital Partners
May include terms around prepayment, expensive closing process, warrants, admin fees
Value Add
Capchase
A prescriptive funding plan
Escalate Capital Partners
Discrete funding events
