Arc Launches Venture Debt, Delivering Competitive Terms in Under 48hrs

Arc, the future of startup finance, today announced that it has made Arc Venture Debt generally available to the public. With nearly $100M in inbound demand for the product since launching the closed beta in early March of this year, Arc expects Venture Debt originations to quickly surpass the annual demand for its flagship capital product, Revenue Financing. The announcement comes on the heels of its debut launch on Product Hunt in June ‘23.

“We’re beyond excited to unveil Arc Venture Debt to the world,” said Don Muir, CEO of Arc. “We’re answering the call of the thousands of founders that were left in the dark following the unraveling of the venture debt markets in the wake of the regional banking crisis earlier this year. And we’re doing it in a way that benefits founders the most, with frictionless, AI-driven underwriting that yields better rates, longer durations, and higher credit limits. With Arc’s automated onboarding and diligence process, legacy lenders simply can’t compete – we’re delivering term sheets in a matter of days - not weeks to months.”

Venture Debt further expands the suite of capital solutions available to customers on the Arc platform. With Arc, startups can now turn their future receivables into cash to reinvest in their growth, and after closing an equity round, tap into Arc Venture Debt to unlock long-duration growth capital. They can deposit this cash into their operating account and instantly deploy it throughout their business, diversify it across the world’s largest banks through a yield-bearing bank sweep equipped with $5M FDIC insurance eligibility, or invest it in U.S. Treasury Bills that generate up to 5.5%+ APY—all in one platform.

“Venture debt is not a new concept in the world of startups, however, the approach we’re taking on the underwriting side of the house is the first of its kind,” said Basile Senesi, CRO of Arc. “We’re completing a process that historically took a team of bankers weeks in minutes. We ingest and make sense of thousands of raw financial data points in real time to understand how a business has performed since inception. We enrich that information with our own proprietary data set to make programmatic underwriting decisions. The more underwrites we complete, the more comprehensive our model becomes, resulting in better terms for founders—that’s what’s so exciting about our approach!”

“We were in a pinch and Arc came through with capital when we needed it most,” said Jason Lee, VP of Finance at Knotch. “We connected our accounting system, subscription billing platform, and external bank accounts, and they made sense of it all and delivered terrific terms—we couldn’t be happier. They are at the top of my list for future funding needs.”

To learn more about and qualify for Arc Venture Debt, visit: https://www.arc.tech/venture-debt

About Arc
Arc is the future of startup finance. Founded in 2021, Arc provides startups with the financial products they deserve, including cash and treasury management as well as embedding financing. The company is based in San Francisco and is funded by Left Lane Capital, NFX, Bain Capital Ventures, Clocktower Technology Ventures, Torch Capital, and Y Combinator, among others. To learn more, visit www.arc.tech.

Note: Arc is a financial technology company, not a bank or an investment advisor. Banking services provided by Evolve Bank & Trust (Member FDIC). All investment advisory services provided by Helium Advisors LLC. Arc receives compensation as a percentage of assets managed by Helium for promoting Helium’s investment advisory services. Brokerage services provided by BNY Mellon Pershing, Member SIPC, through a clearing and custody partnership with Helium. Read additional disclosures here.

Contact Information

Natalie Bartels

PR for Arc

VSC for Arc

arc@vsc.co