Arc, which is based in San Francisco, has raised $20 million in Series A funding. They have accumulated $181 million in funding over the last year, with $31 million of that being equity, and $150 million being a credit line.
Other investors, such as NFX, Y Combinator, Clocktower Technology Ventures, Torch Capital, Atalaya, Bain Capital Ventures, Soma, and Dreamers VC combined with the founders of Wayflyer, Plaid, Column, Chargebee, and Jeeves all joined Left Lane Capital to fund the round.
Digital Bank For Software Startups
Arc is growing quickly with the help of their new funding, and wants to make their software available to more startups while still keeping their equity. Dan Ahrens, a Managing Partner at Left Lane Capital, will also join Arc’s Board of Directors.
Arc co-founder and CEO Don Muir says that Arc is building the number one digital bank for software startups. Previously, startups could only access capital by selling equity, which would leave them with less ownership of their company. Arc provides startups with access to their future revenue, so they can deposit money in a FDIC-insured account. They can also use Arc’s financial software to help their company grow faster. This group of investors has come together to provide capital to Arc, thanks to their relevant experience turning fintech and SaaS businesses into successful platforms.
Dan Ahrens, Managing Partner at Left Lane Capital, is confident that the Arc team has the vision and expertise to redefine the alternative financing category. Their innovative financial solutions are setting the bar in the industry, allowing early-stage companies to save, spend, and invest capital without giving up equity.
Defines Future Of Startup Finance
Arc is a company that hopes to provide the best funding options for startups. It was started by Nick Lombardo and Don Muir in January 2022, and then graduated from Y Combinator in March of that year.
Arc Treasury is a fintech tool that was introduced in June 2022. It is a digital, vertically integrated cash management account for startups, offering essentials like instant deposits, free money transfers, unlimited cards, spending control, and premium benefits. Unlike traditional offline financial institutions, Arc Treasury doesnt have any drawbacks.
Arc Advance helps companies turn future revenue into initial funding, and Arc Runway helps startups analyze their spending to help them better use their money to lengthen their time alive.