Arc intends to use the proceeds from the Series A financing round, which brings the company’s total capital raised to $181m in the last 12 months, to expand its treasury and software products for start-ups
Arc closes $20m in Series A funding round. (Credit: S K from Pixabay)
US-based software-as-a-service (SaaS) finance company Arc has secured $20m in a Series A financing round led by venture capital firm Left Lane Capital.
The Series A funding round brings the company’s total capital raised to $181m in the last 12 months, including $31m in equity and a $150m credit facility.
The funding round also saw participation from NFX, Y Combinator, Clocktower Technology Ventures, Torch Capital, and Atalaya, along with founders of Wayflyer, Plaid, Column, Chargebee, Vouch, and Jeeves, among others.
The company intends to use the funding to advance and expand its treasury and software products, to help the start-ups access and manage capital while retaining equity.
As part of the transaction, Left Lane Capital managing partner Dan Ahrens will be appointed as member of the Arc’s Board of Directors.
Left Lane Capital managing partner Dan Ahrens said: “Arc is setting the industry standard with its innovative financial solutions that help early-stage companies secure, spend and save capital without having to give up equity.
“We’re confident that the Arc team has the leadership, vision and expertise to redefine the alternative financing category and help startups grow sustainably, innovate and create new markets as we enter the next era of the economy.”
Established in 2021, Arc provides start-ups with financial products, including cash management solutions to store, manage and spend funds, and delivers financial analytics.
In June this year, the company rolled out Arc Treasury, its vertically integrated digital cash management account that enables start-ups to access the essentials.
Arc Treasury provides instant deposits, free money movement, unlimited cards, spending control, and benefits, eliminating the drawbacks of legacy offline financial institutions.
The US-based SaaS company also offers Arc Advance, which enables business owners to convert future revenue into upfront capital, and Arc Runway, to help them analyse their net cash burn.