Financing and data insights company re:cap announced its Series A funding round of €13.5 million and the release of its proprietary software as a service (SaaS) platform. The funding round was led by Entrée Capital and included participation from further existing shareholders Felix Capital and Project A, following 24 months of rapid growth for re:cap. With the new funding, the company is positioned to further expand its successful alternative debt financing business and marketplace and to scale its software platform.
“Since day one, our mission has been to build a platform that connects businesses with investors, enabling better decision-making for providers of capital and better financing options for businesses. As a first step, we built an industry-leading debt financing product. In parallel we created a powerful software suite for both investors and businesses. Today, in conjunction with our Series A capital raise, we are announcing the general release of our investor SaaS platform re:cap Institutional and our cash flow software Cash Insights. It’s a great sign that our strong investor base is doubling down on this opportunity,” said Paul Becker, co-founder and CEO of re:cap.
The Series A along with the release of re:cap’s software platform mark a crucial point in the company’s history. With re:cap Institutional, the company is offering a data-driven software platform for modern investors. re:cap Institutional is built on re:cap’s own underwriting and monitoring platform. The platform was developed and continuously optimized using insights from over a thousand businesses and a multitude of real-time business data sources. With Cash Insights, which was previously only available in combination with alternative funding from re:cap, the company is also launching a cash flow management software solution for businesses.
The first customers using re:cap Institutional include London-based investment firms Avellinia Capital and Channel Capital. They use re:cap Institutional to monitor the cash flow of their portfolios in real-time, automate data collection and processing, and set up smart early warning systems. Portfolio companies also benefit from the software. It gives them access to an out-of-the-box solution for holistic cash management with features such as real-time cash flow monitoring, cash-based profit and loss statements and insights into their profitability and runway.
“re:cap’s platform allows us to identify potential constraints at our portfolio companies, which ultimately helps us to be better partners and investors. We have been impressed by the initial product and continuous improvements. The team has been exceptionally responsive and customer-focused,” commented Julian S. Schickel, Partner at Avellinia Capital.
Founded in 2021, re:cap’s funding round takes place on the back of strong company growth, coming from re:cap’s position as a trusted alternative debt funding provider. In the past year the company has grown its deployed funding volume and its ARR (annual recurring revenue) by 4x. The deployed funding volume is in the high double-digit millions. re:cap offers a long-term debt funding product in partnership with HSBC Innovation Banking to tech companies. The company also launched a short-term funding product for services businesses last year – highlighting re:cap’s overall growth ambitions in the debt funding space.
“The re:cap team has impressed us from day one with their tremendous execution. The combination of their knowledge of the financial services sector, their track record and their expertise in tech and data give them a great foundation to build a global software and financing powerhouse,“ added Avi Eyal, Managing Partner at Entrée Capital.
