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With additional €15M raise, Ark Kapital now has €300M available to fund European startups

Ark Kapital
Image credits: Ark Kapital

Ark Kapital, a Stockholm-based data-driven precision finance company, has secured €15M, doubling its equity to €30M in an acceleration round. 

The round was led by banking icon Annika Falkengren with participation from all seed investors — LocalGlobe, Creandum, and angels such as Supercell CEO Ilkka Paananen, Zettle founder Jacob de Geer, EQT Ventures founding partner Hjalmar Winbladh, founder of Embark Studios Patrick Söderlund. 

The company also welcomed a new angel investor — Timo Soininen of Zynga-acquired company Small Giant Games. The latest round brings the total equity raised to €30M and the total capital pool available for founders to lend from €300M. The announcement comes six months after closing its biggest seed round at €165M, and two months after raising €150M to help European tech founders grow businesses.

Offers non-dilutive loans

Ark Kapital was founded in the summer of 2021 and launched in November by Oliver Hildebrandt (CEO), veteran banker Axel Bruzelius (COO), and Spotify’s ex-VP of Analytics and former EQT Ventures partner Henrik Landgren (CPTO).

The Swedish firm offers a new model for tech companies to grow their business, offering non-dilutive loans and access to world-class growth analytics. Ark developed a proprietary AI platform: the ArK Intelligence Machine (AIM). 

The AIM connects to the raw business data of a company, combined with relevant external market data. This unlocks possibilities for growth and strategic foresight. 

The potential insights include when customers will become profitable, when they will require new capital injection, and how quickly they can reasonably repay a loan. 

ArK’s financial product suite currently consists of a transformative, large growth loan that spans between €1-€10M, lasting up to seven years, with repayments not starting for two-to-three years.  

The second loan product in the portfolio allows founders to get instant access to the money they’ve earned through various marketplaces or app stores, allowing reinvestment into growth peaks. Both products are fully non-dilutive.

“I’ve worked in banking my whole life, and the lack of tech lending has never been due to lack of will. The problem has been forecasting startup risk and financial strength, something you could argue the whole capital market is bad at. ArK has come leaps and bounds in this regard, and their success will not just change debt financing but tech funding as a whole. I see this is an investment into the next chapter in finance and funding, “says Annika Falkengren

Zettle founder and angel investor Jacob de Geer adds, “Founders who have gone through an extreme growth journey know the importance of protecting equity. With large ownership comes to control, and with control, you get to keep the joy of building. I’m glad to be part of delivering the new era of funding to the next generation of founders.”

EQT Ventures founding partner and chairman of the ArK board, Hjalmar Winbladh says, “To raise an oversubscribed round in just a few days from some of the most reputable Investors is a strong testament to the whole ArK team, its ability to execute, and the market demand for its ground-breaking lending product to Scale-ups.”

CPTO and co-founder Henrik Landgren further comments on the latest capital injection: “We are gunning to become the leading predictive platform for tech companies, and this money will be put towards getting the best machine learning talent from Google, Spotify, and the rest. What all of these people are doing at a single firm, we invite them to do for every single tech firm in the world.”

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