Berlin-based re:cap has closed on of the largest seed rounds of a European FinTech company, collecting $111.5m.
The investment was backed by Felix Capital, Project A Ventures, and existing investor Entrée Capital.
As part of the deal, re:cap received liquidity for its financing platform, which enables revenue businesses to boost their growth without any dilution or taking on debt.
Funds from the funding round will enable re:cap to hire more staff. It also plans to expand its use case into new verticals, enter new European markets and launch new product features.
re:cap aims to make advanced financing available for all businesses. Through its services, recurring revenue businesses can convert up to 50% of their annual recurring revenue into instant, non-dilutive upfront cash.
Institutional investors can also leverage re:cap to access a new asset class as they can invest directly in the recurring revenues of software companies.
re:cap co-founder and CEO Paul Becker said, “Our funding platform will revolutionise the way software companies finance themselves today. But focusing on software companies is just the beginning: all financing solutions can be rebuilt with the information available in the digital age. Our ambition is for re:cap to become the European champion in this category.”
The FinTech company previously raised pre-seed funding in May 2021, and since then it has grown its team to 15 people.
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