Today we announced our $9.5M seed funding round, as well as the news of having secured up to $70M in debt. It’s an exciting day for us to step out and take our mission — empowering businesses of all sizes to scale — to the next step.
Banks have nearly always underserved SMBs, and the fallout from Silicon Valley Bank and others has put more strain on this issue. Our flexible alternative funding solution enables companies to fulfill wholesale demand through an underwriting model intended to help them scale. Rather than relying on traditional and legacy institutions, SMBs can use Setscale independently or in partnership with existing capital providers to fund their inventory and purchase orders.
A critical time for companies
As former CPG founders and retail professionals, we know the struggles of financing purchase orders first-hand. There’s a clear 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 for all of us, and with the support of our partners, our team is poised to help product-based companies thrive and meet consumer and B2B demand.
We will use this funding to expand our current tech offerings, continue building out the team, and double down on marketing efforts. The debt facility enables us to deploy capital with our customers to finance purchase orders from credit worthy end buyers.
Setscale’s origins
“I’ve been a serial entrepreneur for as long as I can remember”, says Founder and CEO Daniel Fine. “I’ve also learned from an early age that there’s always a way to help others.” When he was just 11, his brother was diagnosed with type 1. Inspired by his brother and his struggle, Daniel and his parents rallied around raising money for diabetes research. This was the foundation of Daniel’s entrepreneurial spirit. “In high school, I started a handful of “businesses” selling products to classmates and friends. I sold just about anything I could get my hands on: sneakers, t-shirts, sunglasses— you name it.”
After being recruited to UPenn as a Division 1 swimmer, Daniel’s entrepreneurial ventures expanded. He created a Diabetes health tech business and tutoring company, but focused on a line of folding sunglasses with licenses to Universities and the FIFA World Cup. Then came COVID. ‘During the pandemic, we worked to do well while doing good, getting cleaning supplies and protective equipment to front line workers, retailers and more. While we were fortunate to fill many orders, we were unable to support the demand for countless others because of a lack of access to capital — we literally didn’t have the money to purchase the goods we needed in order to deliver.”
The capital gap
“While we struggled to fill 8 figure orders, when a friend asked for a capital float against a Purchase Order from the State of California, I realized that no company was solving purchase order financing to enable small and medium sized businesses to scale.” That’s what led Daniel to found Setscale: “Setscale is a true partner for companies looking to grow their business. Now I’m constantly talking to and evaluating businesses of all sizes that need capital to fill their purchase orders. It’s the kind of help I wish I had throughout my entrepreneurial journey.”
“It felt like everywhere I looked, I could not find a company that specifically dealt with purchase order financing in the supply chain. That’s what led me to found Setscale, a true partner for SMEs looking to grow their business. Now, every day at work, I’m talking to and evaluating startups and scale-ups that need capital to fulfill their purchase orders. It’s the kind of help I wish I had throughout my entrepreneurial journey.”
Scale for the long-term
Unlike most capital sources, Setscale prides itself on being a true partner to businesses. Lenders look to collect interest and charge fees at every corner, but at Setscale, we don’t get paid until you get paid. It’s as simple as that.
Today, we’re empowering small businesses to fund their purchase orders while enabling end buyers to diversify their supply chains. We look for US-based businesses that sell physical products to credit-worthy domestic end buyers. Our commitment is to help businesses of all sizes scale, via our partnership model. We’ve funded businesses in categories including CPG, apparel, health and wellness, medical, and manufacturing to execute transactions for dozens of entities.
“With Setscale, I’ve come full circle from my days as a high school entrepreneur,” Daniel reflects. “I now help other companies solve purchase order financing in a way I wish existed when I needed it. Everyday, we’re working to enable entrepreneurs and small business owners to maximize their potential.”
Don’t let cash flow problems stop your momentum. Whatever your size, Setscale helps your business scale with purchase order financing to meet demand. Fill in a request form today to get started.
