Founded in 2021, Arc converts startups’ future revenue into upfront capital, provides a cash management account to store, manage and spend funds, and delivers financial analytics to drive growth.

The company in June launched Arc Treasury, a new banking platform developed in partnership with Stripe. The platform gives clients access to additional financial tools, including bank accounts and spending analytics. Stripe owns and manages the relationship with the host bank, Evolve, while Arc has built the user interface that startups use to access, deposit and spend Arc Advance funding.

“We are building the #1 digital bank for software startups,” says Don Muir, co-founder and CEO of Arc. “For the first time, startups can tap into their future revenue to access capital without dilution, deposit those funds into an FDIC-eligible account, and leverage proprietary finance software to optimize growth. We’re thrilled to join forces with this talented group of investors who bring relevant experience transforming fintech and SaaS startups into market-leading platforms. This capital injection will help us build and scale Arc Treasury to meet the digital banking needs of a new generation of software-driven businesses.”

After going through Y Combinator and raising $11 million in equity and $150 million in debt financing, Arc launched in September 2021. Since then, the company has hosted more than 1,000+ high-growth software startups on its platform.

Other investors in the current Series A round include NFX, Y Combinator, Clocktower Technology Ventures, Torch Capital, Atalaya, Bain Capital Ventures, Soma, Alumni Ventures, and Dreamers VC, as well as the founders of Wayflyer, Plaid, Column, Chargebee, Vouch, and Jeeves.