FinTech Arc gets $20 million in start-up funding
Software-as-a-service (SaaS) finance company Arc has closed a $20 million Series A round to drive growth for its treasury and software products, it said in a press release Tuesday (Aug. 16).
The company’s products help startups access and manage capital while retaining equity. It was founded in January in the belief that startups deserve a financing alternative to debt or equity dilution.
The company has also recently started offering more FinTech tools with the debut in June of Arc Treasury, a cash management account that allows startups to access instant deposits, free money movement, spending controls and more, outside of the usual legacy financial institutions.
In addition, the company also offers programs to raise revenue for upfront capital, and allow startups to analyze cash burn.
Don Muir, Arc’s co-founder and CEO, said the company wanted to allow startups to build more revenue and deposit the funds into an FDIC-qualified account.
“This infusion of capital will help us build and scale Arc Treasury to meet the digital banking needs of a new generation of software-driven businesses,” he said.
The round was led by Left Lane Capital, while other investors included NFX, Y Combinator, Clocktower Technology Ventures, Torch Capital, Atalaya, Bain Capital Ventures, Soma, Alumni Ventures and Dreamers VC.
PYMNTS wrote about Arc’s first $161 million in funding from January of this year.
Read more: SaaS Funder Arc launches with $161M
In a press release, the company touted a partnership with Stripe, saying it wanted to build a FinTech solution “where software entrepreneurs can borrow, save and spend on a comprehensive digital platform.”
Arc said that with the sheer number of cloud services, innovation in SaaS companies had outpaced funding for them.
“We’re on a mission to help startups grow,” Muir said in the announcement. “Arc gives SaaS startups the funding option they deserve, empowering entrepreneurs to scale without selling a stake in their business or risking insolvency with legacy credit products. Arc was purpose-built for software entrepreneurs.”
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