US fintech start-up Arc has raised $20 million in a Series A funding round led by Left Lane Capital.
Other investors 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.
Arc says it will use the new funding to accelerate its growth and expand the availability of its treasury and software products “built to help start-ups access and manage capital while retaining equity”.
Dan Ahrens, managing partner at Left Lane Capital, will also join Arc’s board of directors.
Founded in 2021 and based in San Francisco, Arc converts a start-up’s future revenue into upfront capital; provides a cash management account to store, manage and spend funds; and provides financial analytics to help companies with their growth.
“For the first time, start-ups 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 optimise growth,” says Don Muir, co-founder and CEO of Arc.
The company recently launched a new tool called Arc Treasury in June, which is a cash management account for start-ups offering instant deposits, free money movement and unlimited cards, among other features.
“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,” Muir adds.
Arc launched in January 2022 and has raised a total capital of $181 million, with $31 million in equity and a $150 million credit facility.
The company claims to have deployed “tens of millions” of dollars in non-dilutive funding to over 1,000 software start-ups.
Image and article originally from www.fintechfutures.com. Read the original article here.