Architect Capital will provide asset-based financing
A new San Francisco-area asset-based lender, Architect Capital, has been launched with more than $ 100 million to lend primarily to technology companies in the United States and Latin America, according to a press release.
“The global tech and startup industry is changing rapidly, and new forms of financing to fund new and underappreciated assets are a necessary part of this evolution,” said James Sagan, Founder and CEO of Architect Capital . “We are excited to launch Architect Capital to help disruptive, asset-rich technology companies scale rapidly. “
According to the release, FinTech startups and start-ups will be among those Architect Capital is focusing on as it seeks to grow the business. The company’s argument is that financial service providers have yet to catch up with innovations in the tech sector, with venture capital taking too much of start-up equity and traditional lenders offering backing. inadequate for evolving clients.
The statement read, in part: “While traditional forms of equity and debt financing in the venture capital ecosystem are still integral to the growth of these companies, traditional financing is not designed to support growth. of a company’s underlying financial products. “
The company has invested in six companies to date, including PayJoy, which the press release describes as “a company that provides consumer finance and smartphone technology to customers in emerging markets.”
“Architect has been a great partner for our capital needs,” PayJoy president of financial products Brad Pennington said in the release. “They provide an excellent balance between rigor and flexibility; an important combination for scaling up in emerging markets.
Sagan said in the statement, “Although I have invested in companies in Latin America for the past six years, we are still in the early stages of the region’s FinTech history. At Architect Capital, we are excited to be at the forefront of companies investing in the region as we approach an inevitable period of exponential growth.