Revenue-based financing startup re:cap said today it had welcomed Mubadala Capital on board as a new investor as it announced the close of its extended seed round at $115 million.
That breaks down as a total of $15 million in equity, including $3.5 million from Mubadala Capital in this extended round and no new debt funding beyond the $100 million they took on earlier. re:cap also counts Entrée Capital, Felix Capital, and Project A among its investors.
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.
re:cap, which launched in December 2021, is one of a wave of new revenue-based-funding platforms that offer cash-strapped startups, who may either not qualify for VC funding or bank loans, access to money quickly without giving away any equity. They tend to need the money for things like boosting inventory, paying salespeople's commission, or marketing campaigns. The monthly repayment terms are then based on their Annual Recurring Revenue.
re:cap’s model allows companies, mostly in the SaaS space with recurring subscription revenue, to convert up to 50% of their ARR into instant cash.
Globally in 2021, 30 RBF startups raised $1.8 billion in equity and debt, according to Dealroom data, seven times more than the year before. Names to know in Europe include Uncapped Outfund, Forward Advances and Vitt in the UK, Capchase and Ritmo in Spain, Requr in the Netherlands, and Viceversa in Italy.
As a fun reminder, our ongoing tracker of European revenue-based financing players
|Name||Location||Turnaround time||Revenue Range||Pre-requisites|
|Karmen||France||< 48 hours||40% ARR||-|
|Vitt||London/Berlin||< 24 hours||100% ARR||ARR of £100,000|
|re:cap||Berlin||< 48 hours||50% ARR|
|Ritmo||Madrid||< 24 hours||up to €3 million|
|Requr||Amsterdam||< 24 hours||unspecified cap||MRR of €20,000|
|Viceversa||Milan||< 72 hours||€10,000 - €1 million|
|Wayflyer||Dublin||< 24 hours||$10,000 - $20 million||MRR of $20,000|
|Silvr||Paris||< 24 hours||€10,000 - €10 million||MRR of €10,000|
|ArK Kapital||Stockholm||< 336 hours||€1 million - €10 million||variable|
re:cap said today that since December, the ARR of companies on its platform has grown into the three-digit million range.
“Mubadala Capital is a fantastic fit for re:cap,” re:cap co-founder and CEO Paul Becker said in a statement. “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.”
Mubadala Capital in turn said that re:cap’s product creates “an entirely new asset class for 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,” Fatou Bintou Sagnang, partner at Mubadala Capital Ventures, said in a statement.