Fintech startup Setscale launches out of stealth with ~ $80m equity and debt raise

Fintech startup Setscale launches out of stealth with ~ $80m equity and debt raise

Published: 05-05-2023 16:33:00 | By: Pie Kamau | hits: 2982 | Tags:

Setscale, a fintech startup revolutionizing purchase order financing for SMBs, announced it has raised a $9.5 million seed funding round, as well as secured up to $70 million in debt.

The company's CEO and Founder, Daniel Fine, saw the opportunity for Setscale after he and his team built a nine-figure business, but left millions in orders on the table due to lack of funding options for small businesses. With this new endeavor, the Setscale team aims to mitigate this issue for SMBs by providing alternative financing options that enable them to scale. Round participants include Fin Capital, Great Oaks, Mantis, WndrCo, Ethos and Jaws along with executives and founders from top Fintech and SaaS companies.

Banks have nearly always underserved SMBs and the fallout from Silicon Valley Bank has put more strain on this issue. Setscale provides a flexible alternative, enabling companies to fulfill existing and forward demand through an underwriting model intended to help companies scale. Rather than relying on traditional and legacy institutions, SMBs can use Setscale independently or in partnership with existing capital to fund their inventory and purchase orders.

Coming out of stealth, Setscale's leadership team is rounded out by Jesse Roth, Chief Business Officer and General Counsel, Tami Mohney, Chief Strategy Officer, Don Renyer, Chief Product Officer, and Tim Bjorkman, Chief Technology Officer.

"As a business owner, I've experienced the struggles of financing purchase orders first-hand," said Fine. "There's clearly a need for more financing options for companies that might be overlooked by legacy financial institutions, even though there is market demand for their products. This is a critical time for companies to understand how and from where they will access capital – it's an exciting challenge and with the support of our partners, our team is poised to help product-based companies thrive and meet consumer and B2B demand."

Setscale will use the funding to expand its current tech offerings, continue building out its team, and double down on marketing efforts. The debt facility enables Setscale to deploy capital to its partners to finance product purchases from credit worthy end buyers.

Logan Allin, Founder and Managing Partner, Fin Capital: "We are committed to supporting repeat founders and Daniel's vast experience in many business endeavors gives him a unique perspective on what business owners need, especially in this challenging climate. Setscale's innovative approach to purchase order financing is exactly the type of B2B fintech Fin Capital is excited about, bringing scalability to businesses."

Setscale has helped companies across the CPG, ecommerce, health and wellness, medical and manufacturing spaces, enabling transactions for dozens of entities.

www.setscale.com