Introducing Arc Capital Markets — The First Venture Debt Marketplace for Silicon Valley

For the past half-century, regional banks dominated the venture debt market. That all changed when the regional banking system collapsed, and the top two players shut down their lending arms overnight. Since then the gap between supply and demand has widened, with demand reaching all-time highs and supply dropping to all-time lows.

In direct response, both bank and non-bank lenders attempted to capitalize on the fragmentation, but their offline & opaque application/approval processes left much to be desired—not to mention the time to funding extended well past several weeks into months. Enter Arc Capital Markets.

Through Arc Capital Markets, premium technology companies can apply for up to $250M in debt capital from an exclusive network of pre-qualified lenders, representing $100 billion AUM, through a single frictionless application. Onboarding takes less than 10 minutes to complete and indicative terms are provided in 1-5 business days.

Unlike traditional debt capital raises – which are disjointed, manual, and operationally onerous – founders and CFOs can optimize their company’s debt capital structure with Arc’s software platform in just a few clicks. Startups decide which lenders to meet with, and have access to a dedicated capital markets expert throughout the entire process.

In addition to selecting from the core financing options offered in the platform, startups can optimize their capitalization strategy. They can pair venture debt with a working capital line of credit to strengthen their balance sheet; secure short-term bridge financing while closing an equity round or scaling to profitability; or structure a senior asset-backed loan facility coupled with a mezzanine tranche to meet the unique capital needs of their business.

There is no cost for startups to receive indicative terms from Arc’s network of Capital Partners. Startups with an active cash management account, receive a 50% discount on all Arc Capital Markets fees.

The savings don’t stop there.

We’re so confident in our lender network, that we’ll deposit $10,000 into qualifying startups* Arc account if we aren’t able to provide indicative terms. That’s what we call “win-win” pricing!

Capital Markets works seamlessly with Arc’s cash management platform.

The proceeds from a successful raise can be invested in US Treasury Bills yielding up to 5.5% APY via the Arc Treasury account, diversified across the world's largest banks through a yield-bearing bank sweep equipped with $6M in combined FDIC and SIPC coverage¹, or deployed via the fee-free operating account to drive growth.

The result of combining Arc Capital Markets with Arc Cash Management is more yield, greater diversification, better terms, and less dilution—the four things founders care most about.

Over the past year, we’ve launched Global Treasury, Arc Platinum, and Venture Debt. Launching Capital Markets is another step toward our North Star goal of uniting capital and cash management in one platform to help startups grow.

We welcome you to match with the world’s top lenders in just minutes with Arc.

- Don

*New applications by qualifying startups only. Applications must be submitted by January 30, 2024. Companies must submit all required post-application documents and maintain a connection to accounting and banking data via Arc’s API.

Indicative terms are a prediction of at least one loan offer that Arc believes the applicant would likely receive from a lender in Arc’s network, including type, amount, rate, and payback period, based on Arc’s preliminary underwriting and Arc’s knowledge of the lenders’ preferred borrower criteria.  Indicative terms are not a binding offer from Arc or any lender.

Qualifying Startup Criteria:

• Revenue: >$500K of revenue in the previous 12 months, and growing year-over-year.
• Age: >12 months of operating financial history.
• Runway: >12 months of runway.
• Structure: U.S.-based corporation with all control persons that are U.S. citizens.
• Debt: no existing debt outstanding.
• Adverse Effects: no outstanding bankruptcies, lawsuits, or other material adverse effects to corporation or any key employee.
   

Qualifying startups that meet the company and application conditions above, and which do not receive indicative terms from Arc within 7 business days of submitting all required information, are eligible to receive a $10,000 cash deposit in its Arc cash management account within 30 days of the end of the 7 business days of the offer.  To receive the deposit, you must have an Arc cash management account in good standing at the time Arc attempts the deposit. Arc reserves the right to modify or revoke this offer at any time.