Arc Raises $20 Million to Build the Digital Bank for Tech Startups

Arc, a company that describes itself as the future of startup finance, has raised $20 million in Series A funding in a round led by Left Lane Capital.

Other investors participating in the round 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. Dan Ahrens, Managing Partner at Left Lane Capital, will join the firm’s Board of Directors.

Founded in 2021, Arc aims to provide startups with the financial products they need. The platform converts startups’ future revenue into upfront capital while incorporating other tools to managing their finances.

Don Muir, co-founder and CEO of Arc, said they are building the “number one 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 optimize growth. We’re 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.”

Arc provides a non-dilutive and non-debt funding alternative. The company reports significant growth since its seed funding in January 2022, and today supports 1,000+ software startups on its platform.

Ahrens said that Arc is setting an industry standard for allowing early stage firms to spend without giving up equity:

“We’re confident that the Arc team has the leadership, vision and expertise to redefine the alternative financing category and help startups grow sustainably, innovate and create new markets as we enter the next era of the economy.”

Arc recently offers a suite of Fintech tools with Arc Treasury, launched in June 2022. Arc Treasury is an integrated cash management account that enables startups to access things like instant deposits, money movement, cards, spend control, and “without the drawbacks of legacy offline financial institutions.” Arc Advance allows future revenues to be turned into immediate capital.

Register Now!
Sponsored Links by DQ Promote



Send this to a friend