Arc, a Fintech providing “revenue-based financing” (RBF), has partnered with Stripe to offer a new product “Arc Treasury.” Arc’s founders
Stripe is the global Fintech and well-known transaction and banking-as-a-service provider (BaaS).
Arc’s founders, Don Muir and Nick Lombardo came from VC and PE backgrounds and understand the struggles of raising needed financing. Arc provides “premium” startups with an equity-free path to raise capital in 48 hours instead of the 18 months it may take to close a funding round.
Arc Treasury aims to combine the flexibility of an API-driven solution with the functionality of a consumer app, delivering the financial services startups need without the shortcomings of legacy financial institutions. Users may gain access to non-dilutive capital and quickly deploy the funding. Currently, the cost to users is 5-13% based on growth potential.
Arc Treasury expands the company’s financial tools, which include Arc Advance, which converts future revenue into upfront capital, and Arc Runway, which helps startups analyze their net cash burn and efficiently deploy their capital to maximize their runway.
CEO Muir stated that time is the scarcest resource for startups:
“With the launch of Arc Treasury, startups can now instantly borrow, save, and spend all in one comprehensive digitally native platform. This innovation underscores Arc’s and Stripe’s joint commitment to solve the unique challenges of high-growth software startups. Arc Treasury is another extension of our mission to help startups grow and compete in today’s constantly evolving environment.”
Denise Ho, Head of Product for Banking-as-a-Service at Stripe said that Arc Treasury is a “great example of the kind of innovation today’s high-performing startups need.”
Arc states that its machine-learning-enhanced underwriting technology offers startups up to $300M+ in funding in under 48 hours by tapping into their future recurring revenue to finance their operating expenses.
Since launching in 2021, Arc reports that it has deployed tens of millions of dollars in non-dilutive funding to high-growth software startups.
Arc has raised $161 million in both debt and equity supported by NFX, Bain Capital Ventures, Clocktower Technology Ventures, Torch Capital, Y Combinator, and others.