Berlin-based fintech re:cap today announced the successful closing of a USD 1.5m pre-seed funding round. The round is being led by Entrée Capital, which has previously invested in fintech startups such as Stripe, Rapyd, Prospa and Fundbox. An internationally renowned group of fintech angels and founders, including Chris Adelsbach, Perry Blacher, Jan Beckers, Ramin Niroumand, Jens Lapinski, Mark Ransford, Chris Hitchen and Simon Leicht have also joined the financing round. re:cap is building a digital marketplace with a financing solution for companies with recurring revenue streams.
'We are fortunate to have attracted a strong set of fintech investors and angels as we pursue our mission of creating a new approach to financing for subscription revenue companies. We believe that financing solutions should be built like software: user-centric and data-driven' says Paul Becker, CEO of re:cap.
With re:cap's digital matching platform, companies part of the subscription economy can sell part of their recurring revenue for a fixed period of time, in return for an immediate one-off payment related to the annual subscription they charge their customers. This provides companies with an inexpensive and timely financing solution without having to suffer equity dilution, high interest rates and undergo complex lending processes. Using a marketplace model, re:cap is creating a new asset class in which institutional and sophisticated investors can buy the revenue streams at a discount and receive the cash flows over the fixed duration of the revenues.
'The combination of an experienced team at re:cap together with a captivating and disruptive business idea, quickly got our attention and led to the investment in re:cap. re:cap will revolutionize the financing of European digital companies in the subscription economy,' says Avi Eyal, Managing Partner of Entrée Capital.
re:cap was founded at the beginning of 2021 by Paul Becker (CEO) and Jonas Tebbe (CPO). Becker and Tebbe have previously founded and built Europe's leading wealth tech company LIQID over a period of three years, which now has over EUR 1 billion in assets under management. They then founded the fintech consultancy firm &do and developed digital business models and products for family offices, asset managers and private equity firms.
With the pre-seed funding, re:cap will bring its product to market maturity, attract institutional investors as well as customers to the marketplace and expand the team.
Founded in Berlin in 2021, re:cap is a fintech startup building a disruptive financing solution for the European subscription economy. With re:cap's digital matching platform, institutional investors can invest in the recurring revenue streams of digital companies. The company was founded by fintech entrepreneurs Paul Becker (CEO) and Jonas Tebbe (CPO), who previously built fintech wealth tech pioneer LIQID and fintech consultancy &do.
About Entrée Capital
Entrée Capital, with offices in Israel, UK, and the US, was founded in 2009 to provide multi-stage funding to innovative seed, early, and growth stage companies all over the world. Entrée Capital manages over $650m across a number of funds with a portfolio of over 90 investments that include Snapchat, Stripe, Deliveroo, Coupang, Monday.com, Riskified, Glovo, Stash, PillPack, SeatGeek, and Fundbox.