Re:cap, a Berlin-based digital funding platform that enables institutional investors to invest in the recurring revenue streams of companies, has extended its seed funding round to $15 million with support from Abu Dhabi's Mubadal capital.
The seed round, which was first announced last year and already entails participation from Project A, Felix Capital and Entrée Capital, also includes $100 million of liquidity raised for the firm's funding platform.
Re:cap’s funding platform allows recurring revenue businesses to convert up to 50% of their Annual Recurring Revenue (ARR) into instant, non-dilutive cash. At the same time, the platform grants institutional investors, such as Mubadala, the opportunity to invest directly in the recurring revenues of software companies.
Since its official market launch in December of last year, the Annual Recurring Revenue (ARR) of companies on re:cap's platform has grown into the three-digit million range.
The company says the new capital will be invested into further expansion of the team as well as product and entering new European markets from its launch base of Germany.
Paul Becker, co-founder and CEO of re:cap, says: “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."
Mubadala Capital’s global fintech footprint includes investments in Weavr, Wefox, C2FO, Cardless, Paceline, and others.