After raising €165 million to offer long-term alternative financing options in March and another €150 million debt facility from Pollen Street Capital in April, Stockholm-based ArK Kapital has doubled its equity funding from €15 million to €30 million in an acceleration round. This brings up the total capital pool available for founders to lend to €300 million.
The round was led by banking icon Annika Falkengren with participation from all seed investors, including LocalGlobe, Creandum and angel investors such as Supercell CEO Ilkka Paananen, Zettle founder Jacob de Geer, EQT Ventures founding partner Hjalmar Winbladh, founder of Embark Studios Patrick Söderlund. The company also welcomed a new angel investor - Timo Soininen of Zynga-acquired company Small Giant Games.
Founded by six-time entrepreneur Oliver Hildebrandt (CEO), veteran banker Axel Bruzelius (COO), and Spotify’s ex-VP of analytics and former EQT Ventures partner Henrik Landgren (CPTO), ArK Kapital targets early-stage, fast-growing tech-driven companies.
Offering an alternative to equity-based funding, it focuses on non-dilutive loans to multi-sector European startups ranging from €1 million - €10 million. ArK offers longer-term loans lasting up to eight years to give early-stage startups time to grow.
Annika Falkengren, said: “I’ve worked in banking my whole life and the lack of tech lending has never been due to lack of will. The problem has been forecasting startup risk and financial strength, something you could argue the whole capital market is bad at. ArK has come leaps and bounds in this regard and their success will not just change debt financing but tech funding as a whole. I see this is an investment into the next chapter in finance and funding.”
Zettle founder and angel investor Jacob de Geer added: “Founders who have gone through an extreme growth journey know the importance of protecting equity. With large ownership comes control and with control you get to keep the joy of building. I’m glad to be part of delivering the new era of funding to the next generation of founders.”