Berlin-based re:cap, a digital funding startup that enables institutional investors to invest in the recurring revenue streams of companies, announced on Monday that it has raised $15M (approximately €13.8M) as an extension of its Seed round.
Last year, the company had raised $100M (approximately €92.11M) in its Seed round from investors, including Project A, Felix Capital and Entrée Capital.
The investor
The current extension round came from Mubadala Capital, the asset management arm of Mubadala Investment Company. Mubadala Capital’s global fintech footprint, which includes investments in Weavr, Wefox, C2FO, Cardless, and Paceline, among others, further strengthens re:cap’s international network and access to a broad base of software companies.
Mubadala Capital is a global sovereign investor headquartered in Abu Dhabi with $243B in assets under management. Besides its own investments, the firm also manages third-party capital on behalf of institutional investors in four of its businesses, including three private equity funds, two early-stage venture funds, a public fund, and a fund in Brazil focused on special situations. The various businesses invest across the capital structure in both public and private securities.
Fatou Bintou Sagnang, Partner at Mubadala Capital, says, “re:cap’s product introduces an entirely new asset class to 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.”
Capital utilisation
re:cap claims that the funds will be invested into further expansion of its team as well as product, and entering new European markets from its launch base of Germany.
Paul Becker, co-founder and CEO of re:cap, says, “With an extensive global network and impressive knowledge of the fintech space, Mubadala Capital is a fantastic fit for re:cap. We’re 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.”
“Financing tailored to the needs of the subscription economy”
Founded in 2021 by fintech experts Jonas Tebbe and Paul Becker, re:cap is a fintech startup 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 believes it is revolutionising the financing of European software companies.
re:cap’s funding platform allows recurring revenue businesses to convert up to 50 per cent of their Annual Recurring Revenue (ARR) into instant, non-dilutive upfront cash. At the same time, the platform also grants institutional investors, such as Mubadala, access to an entirely new asset class as they can invest directly in the recurring revenues of software companies.
According to re:cap, since its launch in December, 2021, the Annual Recurring Revenue (ARR) of companies on its platform has grown into the three-digit million range. Also, at the same time, the company has extended the features of its product, now enabling companies with annual contracts to trade on the platform.
In the near future, re:cap says it will further refine the product and start to expand internationally within Europe.
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