Capital

Capital.xyz operates as a financial technology platform designed to streamline the fundraising and banking processes for early-stage companies. The firm originated as Party Round, founded in 2021 by the husband-and-wife team, Jordi Hays and Sarah Chase. Hays, with a background in founding an ad network and a labor marketplace, identified the archaic nature of raising capital from multiple individual investors, which became the catalyst for the company. Chase’s experience with SPVs since she was 19 also informed the company's direction.

Initially, Party Round focused on automating the seed-stage fundraising process. Its tools allowed founders to create a funding round, generate and send standard legal documents like Y Combinator SAFEs, collect digital signatures, and receive funds, including from crypto sources like USDC. The platform was designed to simplify the complexities of fundraising, such as managing wire transfers and extensive legal back-and-forths. In November 2021, the company, then known as Party Round, raised $7 million in a seed round led by prominent investors including Andreessen Horowitz, Seven Seven Six, and Shrug Capital.

In October 2022, Party Round rebranded to Capital.xyz to reflect an expanded vision beyond just fundraising. The rebranding signaled a strategic pivot to become a comprehensive financial technology stack for founders, encompassing banking and spending functionalities. The expanded platform offers free, high-yield business checking accounts where funds are FDIC-insured up to $250,000. Once startups raise capital through the platform, they can immediately access and manage those funds, issue virtual debit cards, and make payments via ACH and wire transfers. The company's business model is not based on its fundraising tools, which are free to use. Instead, revenue is generated from interest on customer deposits and debit card interchange fees. Capital primarily serves US-based C-Corporations for its full suite of fundraising and banking services, and US-based LLCs for banking. A significant milestone in the company's journey was its acquisition by Rho Business Banking in September 2023.

Keywords: founder banking, startup fundraising, seed capital, SAFE notes, venture financing, fintech platform, digital banking for startups, cap table management, angel investing platform, automated fundraising, business checking account, virtual debit cards, ACH payments, wire transfers, USDC investments, raise capital, early-stage funding, Jordi Hays, Sarah Chase, Rho Business Banking