Arc Raises $20m Series A to build a digital bank for SaaS startups
The all-equity deal was led by Left Lane Capital with participation from a number of well-known fintech angel investors.
Fintech platform Arc has raised a $20m Series A funding round.
The San Francisco-based company, which is less than a year old, bills itself a fintech platform that converts startups’ future revenue into upfront capital and also provides cash management tools.
It launched in January 2022 and graduated from the Y Combinator accelerator programme in March 2022.
The company wants to be the “future of startup finance”, according to a media release, helping young companies hang on to control of while taking on funding.
This latest round of funding was led by Left Lane Capital. Other investors include NFX, Y Combinator, Clocktower Technology Ventures, Torch Capital, Atalaya, Bain Capital Ventures, Soma, Alumni Ventures, and Dreamers VC, as well as the founders of Wayflyer, Plaid, Column, Chargebee, Vouch, and Jeeves.
It will use the cash to accelerate its growth and expand the availability of its treasury and software products.
The company will use the new funding The company also announced that Dan Ahrens, Managing Partner at Left Lane Capital, will join its Board of Directors.
“We are building the number one digital bank for software startups,” said Don Muir, Co-Founder and CEO of Arc.
“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 optimize growth.
The round increases the total capital raised to $181m over the last 12 months, with $31m in equity and a $150m credit facility.