Arc, a San Francisco, CA-based full-service finance platform for SaaS, emerged from stealth with $161m in total funding from equity and credit investors.
Backers included NFX, Bain Capital, Clocktower Technology Ventures, Torch Capital, Will Smith’s Dreamers VC, Soma Capital, Alumni Ventures, Pioneer Fund, and Atalaya Capital Management. Atalaya also provided the credit portion of the investment. NFX founder James Currier joined Arc’s Board of Directors.
Led by Don Muir, co-founder & CEO Arc is building a fintech solution where software founders can borrow, save, and spend on one comprehensive digital platform in partnership with Stripe. Its introductory product, Arc Advance, allows SaaS founders to convert future revenue into upfront capital without dilution.
The company leverages technology to programmatically underwrite credit risk and to deploy capital to founders in minutes rather than months. Backend API integrations from companies like Plaid enable Arc to securely underwrite credit risk through real-time access to a startup’s financial data. Leveraging Stripe’s banking-as-a-service technology, customers can store and spend their funding from the company on a single platform designed for software companies.
Arc was an early member of YC’s Winter 2022 batch, which commenced earlier this week.