Berlin-based digital funding platform re:cap has closed an extension of its seed funding round by raising $15 million. The round was announced last year and includes $100 million of liquidity raised for its funding platform. This marked one of the largest seed rounds among European fintechs.
With the seed extension, re:cap brings the leading technology investor Mubadala Capital, the asset management arm of Mubadala Investment Company, on board.
Mubadala Capital has invested in global fintechs, including in Weavr, Wefox, C2FO, Cardless, Paceline, and others. The recent investments of the firm include Getir and Tabby. With this round, it will strengthen re:cap’s international network and access to a broad base of successful software companies.
re:cap will use the proceeds of this round to further expand the team and product. Also, it plans to enter into new European markets from its launch base in Germany.
“With its extensive global network and its impressive knowledge of the fintech space, Mubadala Capital is a fantastic fit for re:cap. We’re very excited to have convinced them of our business model, which matches companies of the subscription economy looking for growth capital with institutional investors aiming to invest in a new, fixed-income like product. We’re looking forward to jointly leveraging the massive potential of this partnership”, said Paul Becker, Co-founder and CEO of re:cap.
“re:cap has built a truly innovative product that introduces an entirely new asset class to institutional investors, while simultaneously addressing the urgent need for better access to non-dilutive capital for companies in the subscription economy. We see a huge opportunity in this space, and we believe that re:cap can meaningfully reshape the future of tech companies with their offering. We couldn’t be more excited to partner with them on this journey.”, said Fatou Bintou Sagnang, Partner at Mubadala Capital Ventures.
Digital funding platform!
The first re:cap product is a digital funding platform, which enables institutional investors to invest in the recurring revenue streams of digital companies. With this, the fintech company revolutionises the financing of European software companies.
Since the official market launch in December last year, the Annual Recurring Revenue (ARR) of companies on its platform has grown into the three-digit million range. Also, its funding platform allows recurring revenue businesses to convert up to 50% of their ARR into instant, non-dilutive upfront cash.
The company has also extended the features of its product, now enabling companies with annual contracts to trade on the platform.
Access to capital made easy
re:cap was founded in Berlin in 2021 by fintech experts Paul Becker and Jonas Tebbe, who previously built wealth tech
pioneer LIQID. The company provides technology companies with easier access to capital.
With re:cap, companies can get funding with a positive, sustainable effect on their company’s growth. All that these companies have to do is create an account and securely connect their bank accounts and payment tools or upload the data manually. The whole process takes only a few minutes.
With re:cap, companies are no longer limited to restrictive debt or dilutive equity financing. Instead, they can access future revenues on-demand.
It is also possible to save time and money with efficiency. re:cap seamlessly integrates with the infrastructure without any extra work. The fintech steadily improves as the company grows and builds up a track record with them over time.