Kapitus
Overview
Kapitus, established in 2006, is a financial service provider headquartered in New York City, specializing in offering a wide range of small business financing solutions. The company operates as both a direct lender and a marketplace, providing businesses access to a broad array of financing products through their expansive network of partners. Andrew Reiser, the founder and CEO, plays a pivotal role in steering the company's vision. Kapitus has successfully raised significant funding, most recently a $45 million investment-grade corporate note financing, enhancing its capital and operational capacity.
Recent Developments
In recent years, Kapitus has achieved several milestones, showcasing robust growth and strategic advancements:
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June 2024: Kapitus secured a $45 million investment-grade corporate note financing to amplify its financing options for small businesses, increasing its total debt facilities to $585 million. The funds are intended to expand Kapitus' portfolio and make technological investments to streamline the acquisition of growth capital by small businesses.
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August 2024: The company featured prominently on the Inc. 5000 list, securing its position among America's fastest-growing private companies with a three-year revenue growth of 258%. This achievement highlights the company's capability to navigate economic challenges while fostering significant growth.
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September 2024: Kapitus Asset Securitization IV LLC, Series 2024-1 issued $160 million in notes as part of a transaction backed by the Kroll Bond Rating Agency (KBRA). This move represents an expansion of Kapitus' securitization activity.
Kapitus remains at the forefront of providing funding solutions to small and medium-sized businesses, continuously adapting to market needs and expanding its financial product offerings to meet dynamic business demands.
Company Information
| Attribute | Information |
|---|---|
| Founding Date | 2006 |
| Headquarters | New York City, USA |
| Founders | Andrew Reiser |
| Revenue | Not publicly disclosed |
| Profits | Not publicly disclosed |
| Key Investors | Guggenheim Partners, Pine Brook |
| Industry | Financial Services |
| Number of Employees | Approximately 396 |
Early History
Kapitus, originally known as Strategic Funding Source, Inc., was founded in 2006 during a time when small business financing options were limited. Andrew Reiser, the founder, identified the market gap for growth capital catering to small businesses, which traditional banks often overlooked. Initially, the company operated by partnering with credit card processing brokers to offer financial solutions, mainly catering to restaurants and retail sectors. Over the years, Kapitus expanded its product offerings beyond the original scope, delving into equipment financing and other niche financial products. This strategic expansion helped position Kapitus as a significant player in the non-bank financing industry, culminating in its rebranding to Kapitus, reflecting a distinct brand identity and market positioning.
Company Profile and Achievements
Kapitus has evolved significantly since its inception, fostering strong client relationships and cementing its reputation as a trusted financial partner:
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The company's core business model revolves around offering diverse financial products tailored for small businesses. These include SBA loans, revenue-based financing, equipment financing, and revolving lines of credit.
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In 2014, Kapitus received a $110 million equity commitment from Pine Brook Partners, a key milestone underscoring investor confidence in its business model.
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Introduced Helix Healthcare Financing, a program dedicated to offering long-term financing solutions to healthcare practitioners like doctors and dentists, highlighting Kapitus' expansion into specialized financial services.
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Kapitus' technological evolution is noteworthy; from initially relying on manual processes, the company has continually upgraded its systems to enhance efficiency and scalability. The emphasis on technology has allowed for rapid funding processes, enabling Kapitus to provide capital to businesses within mere hours of application.
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The company reached impressive operational metrics, funding over $6 billion for nearly 55,000 small businesses up to date, with a comprehensive network of partners that deliver flexible, scalable solutions to meet diverse business needs.
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The collaboration with prominent financial institutions like Brean Capital and Guggenheim Securities underscores its robust financial foundation and strategic capabilities.
Current Operations and Market Position
Today, Kapitus functions as a significant player in the small business financing sector, employing technological innovation to deliver lending solutions efficiently. With noteworthy financing capabilities, the company provides cash flow solutions to SMEs, helping them facilitate growth and overcome financial hurdles.
With approximately 396 employees operating across continents, Kapitus' market presence is notable. It leverages cutting-edge technology to analyze business performance and provide swift financial solutions tailored to meet the unique needs of small businesses, positioning itself as a leader in the non-bank SME lending space.
Conclusion
Kapitus stands as a pivotal enabler in the financial sector, providing vital funding solutions that empower small businesses to thrive in competitive markets. The company's strategic expansions, technological innovations, and robust financial growth trajectory align with the increasing demand for flexible, efficient lending solutions. As Kapitus continues to evolve, its commitment to delivering comprehensive and innovative financial products positions it well for sustained growth and impact in the financial services industry.