San Francisco-based startup finance platform Arc has secured $20 million in a funding round led by Left Lane Capital.
Founded in 2021, Arc transforms startups’ future revenue into upfront capital, offers a cash management account for storing, managing, and spending funds, and provides financial analytics to stimulate growth.
In June, the company introduced Arc Treasury, a banking platform developed in collaboration with Stripe. This platform grants clients access to various financial tools, including bank accounts and spending analytics. While Stripe manages the relationship with the host bank, Evolve, Arc has created the user interface that startups use to access, deposit, and utilize funding from Arc Advance.
“We are building the #1 digital bank for software startups,” stated Don Muir, co-founder and CEO of Arc. “For the first time, startups 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 optimize growth. We’re thrilled to partner with this talented group of investors who have relevant experience in transforming fintech and SaaS startups into market-leading platforms. This capital will enable us to develop and expand Arc Treasury to meet the digital banking needs of a new generation of software-driven businesses.”
After participating in Y Combinator and raising $11 million in equity along with $150 million in debt financing, Arc officially launched in September 2021. Since its inception, the company has supported over 1,000 high-growth software startups on its platform.
Other investors in the current Series A round include NFX, Y Combinator, Clocktower Technology Ventures, Torch Capital, Atalaya, Bain Capital Ventures, Soma, Alumni Ventures, and Dreamers VC, along with the founders of Wayflyer, Plaid, Column, Chargebee, Vouch, and Jeeves.