re:cap, a Berlin-based company offering financing and data insights, has announced a successful Series A funding round of $14.6 million. This investment was led by existing investor Entrée Capital with participation from Felix Capital and Project A.
Founded in 2021, re:cap has focused on becoming a central hub for businesses seeking alternative debt financing solutions and investors looking for opportunities in the space. They achieve this by leveraging a data-driven platform that matches businesses with suitable funding options and provides valuable insights to investors.
Back in April, we also reported about UserHub which raised $3.2M in pre-seed funding to revolutionise SaaS monetisation.
Debt financing success and strategic expansion
re:cap has experienced rapid growth over the past two years. They have established themselves as a trusted alternative debt financier, with their deployed funding volume and annual recurring revenue (ARR) quadrupling in the last year alone. The company offers long-term debt financing for tech companies, partnering with HSBC Innovation Banking, and also provides short-term funding solutions for service businesses.
Following this successful track record in debt financing, re:cap is now strategically expanding its offerings with the launch of their SaaS platform. This platform caters to both investors and businesses, offering distinct benefits for each segment.
re:cap institutional: Empowering investor decision-making
The re:cap Institutional platform is designed to be a data-driven solution for modern investors. Built upon re:cap’s existing underwriting and monitoring platform, re:cap Institutional leverages insights gleaned from a vast database of businesses and real-time data sources. This empowers investors to:
- Monitor portfolio cash flow in real-time.
- Automate data collection and processing tasks.
- Establish automated early warning systems to identify potential issues.
Avellinia Capital and Channel Capital, two London-based investment firms, are among the first users of re:cap Institutional. They highlight the platform’s ability to streamline cash flow monitoring, automate data management, and facilitate proactive portfolio management.
Cash insights: Streamlined cash flow management for businesses
Previously available only to businesses receiving alternative funding from re:cap, Cash Insights is now being offered as a standalone SaaS product. This cash flow management software provides businesses with features such as:
- Real-time cash flow monitoring.
- Cash-based profit and loss statements.
- Insights into profitability and runway analysis.
The re:cap Institutional platform extends benefits beyond investors. Portfolio companies using re:cap-funded solutions also gain access to Cash Insights, enabling them to implement holistic cash management practices. This transparency fosters stronger collaboration between businesses and investors.
What we think about the startup
The $14.6 million Series A funding strengthens re:cap’s position to expand its presence as a provider of alternative debt financing and data-driven solutions for both businesses and investors. Investors like Avi Eyal, Managing Partner at Entrée Capital, recognize the potential of re:cap’s combined expertise in financial services, technology, and data analytics. As re:cap expands its SaaS platform and financing footprint, the company is well-positioned to become a prominent player in the evolving landscape of business financing and investor decision-making.
