Berlin, 15.06.2022 – The Berlin-based technology company re:cap today announced its launch in the Netherlands. The market entry is a big step for re:cap to become the leading pan-European financing solution for the subscription economy and reimagine access to capital for millions of European tech companies with recurring revenues, helping them to leverage their growth potential. re:cap clients can convert up to 60% of their Annual Recurring Revenue (ARR) into instant, non-dilutive upfront cash. Instead of giving shares to investors, they retain the full stake of their success. At the same time, the platform grants institutional investors access to an entirely new asset class as they can invest directly in the recurring revenues of software companies.
After VC investments have been slowing down significantly in the past weeks and months, many start-ups started to rethink their financing mix and look for alternatives to venture capital. While venture debt financing is usually very time-consuming and can drag on for several months, with re:cap companies can optimise their cash flow with little time expenditure: A seamless integration into their infrastructure automates due diligence processes and if eligible, enables access to capital within 48 hours. The sentiment on the market is also reflected in the demand for re:cap: The fintech is experiencing a high influx and has more than doubled its customer base since the beginning of Q2 2022. The total ARR of customers using the re:cap platform is now close to one billion Euro.
“For a long time, venture capital was the only conceivable form of financing for many start-ups. Current market conditions, however, are forcing companies to reflect, especially when it comes to their financing. With our funding platform, we are committed to revolutionise the way software companies finance themselves today. We are very pleased to help subscription-based companies not only in Germany but now also in the Netherlands to optimise their cash flow and to best accelerate their growth, even in turbulent times”, says re:cap co-founder and CEO Paul Becker.
With the newly launched feature Insights, re:cap offers businesses a free analytics tool to monitor their most important KPIs such as churn, runway and growth rate, and benchmark their performance against the industry. It is available for any interested subscription based business, regardless of whether it receives funding through re:cap. With re:cap Insights, businesses understand better how selected metrics that have an impact on their financing terms are performing, and can take action to improve them. An improved rating enables them to get more funding and grow their company even faster. Interested users can sign up to test the free analytics tool here.
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.