Arc offers debt funding and digital banking services tailored to high-growth SaaS startups, including its Arc Advance product that converts future revenue into upfront capital. It also launched Arc Treasury, a vertically integrated deposit account built in partnership with Stripe that provides checking, card issuance, and FDIC insurance eligibility. The company says it has more than 1,000 companies on its platform, is deploying “tens of millions of dollars in volume,” and has a backlog of over $3 billion of demand for Arc Advance. Arc reports that its revenue has grown by an average of 250% every month since Q4 2021 and projects it will activate over $500 million of funding and deposits for customers in the next 12 months. The startup works with both bootstrapped and VC-backed B2B software companies and has doubled its team to 30 since January. Arc builds a fintech platform purpose-built for SaaS startups, enabling founders to borrow, save, and spend on one comprehensive digital product. Its introductory product, Arc Advance, allows SaaS founders to convert future recurring revenue into upfront capital without dilution. Built in partnership with Stripe and using Plaid integrations and machine learning, Arc programmatically underwrites credit risk and deploys capital rapidly. The company says it will launch a full suite of financial tools in the coming months to broaden its offering. Since launching last summer, over 100 startups have signed up and Arc increased total funding to customers by over 110x in Q4 2021. Arc was founded in 2021 and is based in San Francisco.

Total raised

$181M

Funding rounds

3

Latest round

Series A

Latest activity

Aug 2022