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Extend your runway and optimize your next fundraise

By extending your runway with re:cap, you can easily postpone your next equity round, achieve higher valuations, and avoid dilution. Unlock your path to profitability and raise from a position of strength.

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Preserve runway

Leverage your re:cap funding to cover ongoing costs for marketing and personnel to maximize your runway.

Reach profitability

Unlock your path to profitability and consider your next equity round as optionality instead of necessity.

Optimize next round

Increase valuation and decrease dilution by fundraising at a later stage with stronger metrics and more milestones achieved.

Discover insights

Benchmark your cash flow and unit economics against the averages to identify areas for improvement.

Why should you extend your runway with re:cap?

Depending on your situation, re:cap works as a substitute or addition to other financing options – with clear advantages in both cases. Start diversifying your capital stack now.
Fixed costs
Additional costs
Time to money
Amount
Non-dilutive
Restrictions
Reporting requirements
Venture Debt
8% – 15% p.a.
May be divided in cash and Payment-in-Kind (PIK) interest rates
>€100k – open end
Counting in legal fees, closing fee, maturity fee, equity warrant or equity kicker, etc.
3+ months
€1m – €50m
Often divided into tranches, where each tranche is tied to the achievement of milestones
Due to equity warrants or equity kicker
Financial covenants & securities
For example pledges on receivables, patents, intellectual property and/or bank accounts
Monthly reporting
Depending on the respective exposure, providers may also ask for board seats
2% – 15 % on each financing
None
48 hours
Up to 60 % of ARR
None
Automated through platform
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Venture Capital
5% – 25% equity
>€100k – €900k
Legal, notary and potentially advisor fees
3+ months
€1m – €50m+
Personal guarantees & commitments
Monthly reporting, board seats
More options

Reduce dependency on venture capital and venture debt.

Less dilution

Preserve your ownership stake and stay in control of your company.

Less costs

Save time and money spent on due diligence and reporting.

More control

Your business, your decisions. With re:cap, you remain in charge.

What other founders achieved with re:cap

Start as early as possible

No matter if you have just raised a financing round or plan to raise one in the future – act now to maximize your runway and optionality with re:cap.

How to get started with re:cap

Set up your account and sync your data
Get approved and receive your terms
Request capital and get personalized insights

FAQs

Didn’t find an answer? Talk to us.

Why should I use re:cap if I don't have runway issues at the moment or if I just raised funding?

A runway extension gives you more control and flexibility regarding when you are going to raise funds. Thus, it can allow time to realize a higher valuation or to wait for better market conditions in general. If you are already on the way to becoming cash flow positive, a runway extension can help you to reach that goal without the need for raising additional equity.

The best timing to reap these benefits is when you have just raised funds, and thus have a healthy runway, as it is a major driver of the financing conditions you are going to look at. Additionally, we see many clients who deliberately preserve raised equity capital for long term investments and use re:cap to finance all other spending. If you wait too long and your runway becomes too short it can be difficult to get any financing even if you are willing to pay more for it.

How much can I extend my runway?

The runway extension effect of re:cap’s financing depends on several factors, and thus it is very difficult to give a general answer. In our experience our financing can extend the runway on average by 12 months and in many cases enables you to get profitable without any further equity injection. As part of our suite of financial tools, we allow you to calculate your runway with re:cap to get an indication based on your individual situation.

How do I have to use re:cap in order to achieve a runway extension?

re:cap financing can be used like a revolving credit line to extend your runway. You decide how much of your total financing limit you want to use to extend your runway. The respective amount of contracts will be traded and you receive their annual value as an instant payout on your account. During the following months you can choose to stay cash flow neutral (i.e. keep using your financing line) by trading the amount of contracts required to offset the payback sum. So every month you can control if you like to increase financing, stay cash neutral or start paying back (given your financing limit is sufficient).

We advise our clients to plan for a certain extension amount and based on this we simulate the expected cash flow effect on your company using our runway extension calculator.

Are there additional points to consider?

Working with alternative financing may be a new instrument for primarily equity financed companies. In comparison to equity, the biggest difference is that you have to repay the received financing on a monthly basis. In return, you know exactly how much you pay for the financing used and in general have significantly lower cost of capital.

If you maintain a sufficient runway, future trades are always accessible. Thus, you can manage your cash flow by refinancing upcoming repayments with new trades as the capacity of your re:cap financing grows with your revenues. Our suite of financial tools enables you to discover the best timing and source of funds (e.g. new equity round or operating cash flow) and which measures are required to get there.

Is re:cap right for my company? Why should I sign up?

re:cap is made for all growing companies based in Germany or Netherlands who are already generating recurring revenue. Whether VC-backed or bootstrapped, small or large – our non-dilutive, on-demand financing solution works for you.

Creating an account is fast, easy, and free of charge. As part of the onboarding process, you will get information about your current financing limit and financing conditions. Additionally, we provide you with KPIs and additional insights for free. In short: there is no reason not to sign up!

Need more information? Please visit our general FAQ section here or contact us!