Berlin, April 11th 2022 – Berlin-based tech company re:cap today announces the extension of its seed financing round, increasing the equity part raised in this round to $15 million. The seed round, which was first announced last year, also includes $100 million of liquidity raised for its funding platform.
With the seed extension, re:cap is bringing leading technology investor Mubadala Capital, the asset management arm of Mubadala Investment Company, on board. Mubadala Capital’s global fintech footprint - which includes investments in Weavr, Wefox, C2FO, Cardless, Paceline, and others - further strengthens re:cap’s international network and access to a broad base of successful software companies.
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.
re:cap’s funding platform allows recurring revenue businesses to convert up to 50% of their Annual Recurring Revenue (ARR) into instant, non-dilutive upfront cash. At the same time, the platform grants institutional investors, such as Mubadala, access to an entirely new asset class as they can invest directly in the recurring revenues of software companies.
“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. We’re looking forward to jointly leveraging the massive potential of this partnership”, says Paul Becker, Co-founder and CEO of re:cap.
Only since the announcement of re:cap’s seed funding round and official market launch in December of last year, the Annual Recurring Revenue (ARR) of companies on its platform has grown into the three-digit million range. In the same time, the company has also extended the features of its product, now enabling companies with annual contracts to trade on the platform. In the coming months, re:cap will further refine the product and start to expand internationally within Europe.
“re:cap has built a truly innovative product that introduces an entirely new asset class to institutional investors, while simultaneously addressing the urgent need for better access to non-dilutive capital for companies in the subscription economy. We see a huge opportunity in this space, and we believe that re:cap can meaningfully reshape the future of tech companies with their offering. We couldn't be more excited to partner with them on this journey.”, says Fatou Bintou Sagnang, Partner at Mubadala Capital Ventures.
Founded in Berlin in 2021, re:cap is a fintech that provides technology companies with easier access to capital. The first re:cap product, a digital funding platform, enables institutional investors to invest in the recurring revenue streams of digital companies. In doing so, re:cap is revolutionizing the financing of European software companies. The company was founded by fintech experts Paul Becker (CEO) and Jonas Tebbe (CPO), who previously built wealth tech pioneer LIQID. re:cap is backed by leading technology investors such as Entrée Capital, Felix Capital, Project A and Mubadala Capital.
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Mubadala Capital is the asset management arm of Mubadala Investment Company, a leading global sovereign investor headquartered in Abu Dhabi. In addition to managing its own balance sheet investments, Mubadala Capital manages third-party capital on behalf of institutional investors in four of its businesses, including three private equity funds, two early-stage venture funds, a public fund and a fund in Brazil focused on special situations. The various businesses invest across the capital structure in both public and private securities.