The alternative financing service for startups Arc closes its funding round
Bowwhich bills itself as the future of startup funding, closed its Series A funding round at $20 million.
Left Lane Capital was 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 has also been backed 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 principle that high-end startups deserve a non-dilutive, debt-free, premium funding alternative and financial tools to help them scale on their terms. The company programmatically underwrites credit risk, helping it deploy capital to founders in minutes.
Its offerings include Arc Advance, which allows founders to convert future earnings into initial capital, and Arc Runway, which helps startups analyze their net cash burn.
The company was stealth launched in January 2022 with $161 million 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’re building the #1 digital bank for software startups. For the first time, startups can tap into future earnings to access capital without dilution, deposit those funds into an FDIC-eligible account, and leverage proprietary funding software to optimize growth.
“We are thrilled to partner with this talented group of investors who bring relevant experience in 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.
Alongside the investment, the company announced that Left Lane Capital managing partner Dan Ahrens had joined Arc’s board.
Arc recently launched the Arc Treasury tool, which is a digitally native, vertically integrated cash management account that gives startups access to the essentials, including instant deposits, free money movements, cards unlimited, expense control and perks.
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