Ark Kapital offers startups an alternative to VC funding. Check out the 21-slide pitch deck it used to raise $183 million in debt and equity.
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- Ark Kapital, a Swedish fintech, has raised $182 million in a mix of debt and equity funding.
- The company offers loans to startups based on real-time data about their financial health.
- Check out the 21-slide pitch deck that Ark used to raise the fresh funds.
Ark Kapital, a fintech that offers financing to startups as an alternative to venture capital, has raised $182 million through a mix of debt and equity.
The Swedish company, which was founded in 2021, uses AI and machine learning to analyze the financial health of early-stage tech companies and then offers “precision” loans based on their performance.
Ark is part of a growing stable of financiers offering an alternative to traditional venture funding. Loans such as Ark’s enable a founder to keep hold of the equity in their business while gaining access to capital to grow. Venture debt has been on the rise in Europe, where founders raised a record $11 billion last year.
“We think it’s fantastic to see the rollout of debt products to a larger cohort of companies in Europe. We see ourselves as the next generation of that,” Axel Bruzelius, Ark’s cofounder, told Insider.
“Products like revenue-based financing are often paid back in less than a year, which helps companies to their next hurdle, but most companies are focused on growth and profitability over a longer term,” he continued.
With RBF, repayment is usually linked to revenues, which means companies can pay back varying amounts, often on a monthly basis. Ark believes its data-driven approach is more granular, partly thanks to the work of its cofounder Henrik Landgren, who helped build EQT Ventures’ Motherbrain analytics platform. Ark customers instead begin to repay their loans when specific targets, such as profitability, are met.
The company — launched in November by Bruzelius, Landgren, and Oliver Hildebrandt — intends to use its new funding to scale its R&D and grow its team from 25 employees. Ark offers loans between $1.1 million and $11 million to companies in Sweden and Denmark, but it looks to expand its European presence in the coming months.
The equity portion of the funding, $16.5 million, was led by LocalGlobe, with participation from Creandum, the founders of the startups iZettle and Supercell, and Hjalmar Winbladh, a founding partner at EQT. The company declined to comment on who provided its debt funding.
Check out Ark Kapital’s seed-funding pitch deck below.