Arc, a startup that offers a finance platform for Software-as-a-Service (SaaS), announced Thursday (Jan. 13) it had emerged from stealth with $161 million in funding.
“In partnership with Stripe, Arc is building a first-of-its-kind fintech solution where software founders can borrow, save, and spend on one comprehensive digital platform,” the company said in a news release. “Its introductory product, Arc Advance, allows SaaS founders to seamlessly convert future revenue into upfront capital without dilution at the click of a button.”
Arc notes that while cloud services are a fast-growing sector, innovation in SaaS companies has outpaced their funding.
“We’re on a mission to help startups grow,” Arc Co-founder and CEO Don Muir said in the announcement. “Arc provides SaaS startups with the funding alternative they deserve, empowering founders to scale without selling an ownership stake in their business or risking insolvency with legacy credit products. Arc was purpose-built for software founders.”
He adds that the company will, in the next few months, launch a full suite of financial tools to help SaaS providers scale their businesses.
“Unlike conventional banks, Arc leverages technology to programmatically underwrite credit risk, allowing Arc to deploy capital in minutes rather than months,” the company said.
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And with the help of Stripe’s banking-as-a-service technology, clients can store and spend their funding from Arc on a platform meant for software companies.
Arc said more than 100 startups have joined its platform since the company launched last summer. In 2021’s fourth quarter, Arc increased its total funding to customers more than 110-fold, a period where funding was restricted to select launch partners.
Read more: SaaS Funder SaaS Capital Raises $128M
The news comes a little less than a week after another SaaS funding service, SaaS capital, announced it had raised $128 million. The firm says it has provided more than $200 million in growth debt to almost 100 companies.
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