Alternative startup finance service Arc closes round

Alternative startup finance service Arc closes round

Arc, which stylises itself as the future of startup finance, has closed its Series A funding round on $20m.

Left Lane Capital served as the leader, with commitments also coming from NFX, Y Combinator, Clocktower Technology Ventures, Torch Capital, Atalaya, Bain Capital Ventures, Soma, Alumni Ventures and Dreamers VC.

The round was also supported by angel investors, including the founders of Wayflyer, Plaid, Column, Chargebee, Vouch and Jeeves.

With the funds, the company plans to accelerate its growth and expand the availability of its treasury and software products.

Arc was founded on the basis that premium startups deserve a premium non-dilutive and non-debt funding alternative, as well as financial tools to help them scale on their terms. The company programmatically underwrites credit risk, helping it deploy capital to founders within minutes.

Its offerings include Arc Advance, which allows founders to convert future revenue into upfront capital, and Arc Runway, which helps startups analyse their net cash burn.

The company launched out of stealth in January 2022 with $161m in funding from equity and credit investors. Since then, the company has experienced strong growth and supports 1,000 high-growth software startups on its platform.

Arc co-founder and CEO Don Muir said, ?We are building the #1 digital bank for software startups. For the first time, startups can tap into their future revenue to access capital without dilution, deposit those funds into an FDIC-eligible account, and leverage proprietary finance software to optimise growth.

?Were thrilled to join forces with this talented group of investors who bring relevant experience transforming fintech and SaaS startups into market-leading platforms. This capital injection will help us build and scale Arc Treasury to meet the digital banking needs of a new generation of software-driven businesses.span>

Alongside the investment, the company announced that Left Lane Capital managing partner Dan Ahrens has joined the Arc board of directors.

Arc recently launched the Arc Treasury tool, which is a digitally native and vertically integrated cash management account that enables startups to access the essentials, including instant deposits, free money movement, unlimited cards, spend control and benefits.

Copyright ? 2022 FinTech Global

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