Arc, a full-service finance platform for SaaS companies, has emerged from stealth with $161m in total funding from equity and credit investors.
In partnership with Stripe, Arc is building a first-of-its-kind FinTech solution where software founders can borrow, save, and spend on one comprehensive digital platform. Based in San Francisco, Arc is funded byNFX, Bain Capital Ventures, Clocktower Technology Ventures, Torch Capital, and Y Combinator, among others.
Arc leverages technology to programmatically underwrite credit risk, allowing it to deploy capital to founders in minutes rather than months.
The company said that backend API integrations from companies like Plaid enable it to rapidly and securely underwrite credit risk through real-time access to a startup’s financial data. Moreover, machine learning allows Arc to improve interpretation of the financial information it receives compared to manual analysis alone. Leveraging Stripe’s banking-as-a-service technology, customers can store and spend their funding from Arc on a single platform designed for software companies.
By building on top of these technology solutions, Arc said it has “turned financing on its head, allowing founders to borrow against the future revenue of their company and grow efficiently.”
Don Muir, Arc co-founder and CEO, said: “Our FinTech platform eliminates the friction inherent in traditional capital raising while broadening access to non-dilutive capital, helping founders preserve ownership in the business they’ve worked so hard to build.
“And this is only the beginning — in the coming months, we’ll be launching a full suite of financial tools to empower SaaS founders to scale their businesses efficiently and retain control.”
Since launching last summer, over 100 startups have signed up for the Arc platform. To date, the largest segment of customers has been VC-backed B2B SaaS companies seeking to accelerate their growth spend while also prolonging their runway before raising additional equity.
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