Arc’s $20M Series A and The Digital Bank for Software Startups

Don Muir

Co-Founder & CEO

The new generation of software-driven businesses is underserved by legacy financial institutions that rely on one-size-fits-all financial products and relationship-driven banking processes. I know this because I used to be a part of this offline finance world. I’ve experienced its inefficiencies firsthand.

Today, software founders expect their startup’s finance stack to work as seamlessly as the consumer finance apps they rely on everyday. Unfortunately, most of their options fall far short.

At the same time, rising interest rates have driven the cost of equity through the roof. Software startups that are valued on future projected cash flows have seen revenue multiples get cut in half. Founders that previously raised at 50-100x revenue multiples, are now raising at 10x. The flat round is the new up round. Dilution is more tangible than ever before.

As a result, founders of explosive-growth software startups are turning to alternative forms of financing and digitally-native banking that are purpose-built for them—more specifically, they’re turning to Arc.

The future of startup finance is here.

For the first time, startups can tap into their future revenue streams to access non-dilutive capital, deposit these funds into an FDIC insurance eligible account, and leverage financial insights to more efficiently drive growth—all via one vertically-integrated digital platform.

Today, we are announcing our $20M Series A led by Left Lane Capital to fuel the next stage of our growth. We are also announcing that Dan Ahrens, Managing Partner at Left Lane Capital, will join our Board of Directors. Other institutional investors include NFX, Y Combinator, Clocktower Technology Ventures, Torch Capital, Bain Capital Ventures, Soma, Alumni Ventures and Atalaya, as well as the founders of Wayflyer, Plaid, Column, Chargebee, Vouch, and Jeeves. This round brings Arc’s total capital raised to $181 million over the last 12 months.

Our mission is simple: help startups grow.

Since launching in January of this year, we’ve built a community of over 1,000 founders and deployed tens of millions in Arc Advance funding. We’ve also helped hundreds of founders across the country accelerate their growth, extend their runway, and more efficiently deploy their capital. We’ve helped startups grow.

We’ll continue to help by building the #1 digital bank for software startups, investing in our engineering, product, and go-to-market teams, and activating hundreds of millions in funding and deposits over the next year.

We want to help you grow too.

To that end, we’ve created a limited time offer. For the next 30 days (until Sept. 16), we’re giving startups who sign up for an Arc Treasury account a discount on Arc Advance funding. In addition, we’re also offering a welcome bonus and yield on deposits for qualified customers.

To see if you qualify, and to join the thousands of startups already on the Arc platform, visit https://app.arc.tech/.

If you’re curious about why Arc is the future of startup finance, read our manifesto.


Note: Arc is a financial technology company, not a bank. Banking services provided by Evolve Bank & Trust®; Members FDIC.
 

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