AppDirect Raises $100 Million to Fund Investment Program

B2B subscription commerce platform AppDirect received $100 million for its investment program.

The new funding will support financing options for technology advisors through the AppDirect Capital Invest program, according to a Tuesday (Jan. 9) press release.

“In today’s dynamic channel market, every technology advisor faces the decision to stay the course, seek capital to invest back into their business or consider whether the time is right to be acquired or acquire,” the company said in the release. “The AppDirect Capital Invest program supports these endeavors by combining upfront, non-restrictive capital with the power of the AppDirect Marketplace, allowing technology advisors to use the capital to scale, innovate, retain top talent, or make outside investments while maintaining 100% ownership of their business.”

The funding, from past investor CDPQ, comes as venture capital fundraising in the United States is at its lowest level in six years.

The yearly fundraising figure for 2023 was down more than 50% compared to the previous year, with the annual total raised by VCs at $67 billion, which is the lowest since 2017. The decline in funding has hindered startups across the globe, triggering widespread layoffs and fewer chances to cash out.

“The challenging funding landscape has caused many startups to shut down, with thousands of workers losing their jobs,” PYMNTS wrote last week. “VC firms have also faced difficulties, with some showing vulnerabilities. However, there is cautious optimism that the situation will improve in 2024, albeit slightly.”

Meanwhile, analysts at PitchBook forecasted that VC fundraising in 2024 may increase compared to 2023, although it will still hover below the record levels seen in 2022. Instead, the funding environment could look a lot like the one seen in 2020, which was a relatively good year for the industry despite worries about the pandemic.

“Everything is trying to find a balance,” Kyle Stanford, venture capital analyst at PitchBook, said.

Meanwhile, the funding environment remains tough for businesses of all sizes, especially smaller and newer ones.

“For instance, those companies with less than three years of activity and those with less than $150,000 in revenue want 26% more financing than what is available,” PYMNTS wrote last month. “These companies typically have lower credit ratios, making it harder to access financing sources.”