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Ark Kapital doubles capital pool to €300M after just months in market

  • Since closing one of the largest European seed rounds, Ark Kapital announces a big extension of its capital pool
  • The previous €165M gets accompanied by €150M – amounting to a total of €300M available to European founders
  • After just a few months in market, Ark Kapital has amassed one of the biggest lending pools available to European tech founders
  • This extension comes as a response to strong traction in the Nordic markets and will be focused towards European expansion

Stockholm, 8th July, 2022 – After just a few months in the market, ArK Kapital announces a €150M extension to its loan pool available to European founders. Following the €165M seed round in March this year, ArK Kapital can now provide a total of €300M to investment-worthy founders through non-dilutive loans of €1-10M. This marks an important step towards ArK Kapital’s mission of becoming the center of gravity for growth financing and intelligence, as this is only the beginning of the build up of their future capital pool for founders.

The loan facility comes from a Swedish bank and makes ArK Kapital the holder of one of the biggest lending pools available to European tech founders. The reason that more money is being funneled into ArK is because tech founders are in greater need than ever to access alternative funding and because ArK’s product suite is unique in the space.

ArK stands apart from first-generation revenue-based financing (RBF) products, which are more similar to pay-day loans for businesses, due to tech companies typically needing to start repaying the loan instantly and repay the full amount in 6-12 month. In contrast, ArK’s financial product suite is crafted to give founders a lot more legroom, designed to fit the reality of many tech companies growth journeys. The ArK Growth Loan lasts up to seven years, with repayments not starting for two-to-three years– letting founders build without having to start repaying with borrowed money. The second loan product in the portfolio allows founders to get instant access the money they’ve earned through various marketplaces, letting them reinvest into growth peaks.

ArK is the only capital player that has the confidence to lend with the type of risk posed by the growth loan, which is attributed to an artificial intelligence (AI) maturity rarely found in the capital market. This early expertise is ushered in by co-founder and CPTO Henrik Landgren, Spotify’s first VP of analytics and the creator of EQT’s Motherbrain.

As ArK’s AI-platform (AIM) grows in sophistication, and the capital pool keeps extending – ArK will be able to provide an unprecedented level of financial craftsmanship directed towards the founder community.

Henrik Landgren, CPTO and co-founder, comments:

“We find ourselves right in the eye of the current storm. We are honestly the only ones that offer a real option to equity funding, with big loans stretching over several years. That is why more money is being put into our pocket this early on, as the demand is so high. Getting funding from us should however not be seen as a rescue package, but a sign of strength. We take a DNA-test of companies’ growth; if they get a loan, it means that they are showing the type of growth the whole capital market is scouting for.”

Sixth-time-founder Oliver Hildebrandt, CEO and co-founder, adds:

“AIM, and our AI-driven, always-connected approach to underwriting seems to be exactly what the financial markets have been waiting, which makes it possible for us to onboard more and more financial partners to the AIM-platform, unlocking more growth-money for the European founder community.”

Chris Crespo
Chris Crespo
Chris is a Founding Partner and Chief Editor at Nordic Fintech Magazine, where he simplifies complex financial ideas into easy-to-understand content. With nearly 20 years of experience in management consulting and financial services, including leadership roles with some of Europe's largest banks, he offers profound industry insights. Previously serving as the Chief Futurist at the largest bank in the Nordics, Chris has sharp views on the Future of Financial Services, Money, Disruption, and Ethical AI in Finance. He is also a guest lecturer at Stanford University, Singularity University and Copenhagen Business School, where he frequently discusses the future of Money, Finance, and Entrepreneurship in Financial Services. As a Behavioral Economist, Chris is passionate about studying how human behavior and decision-making relate to risk. He also delves into the connections between psychology, leadership, and technology within financial services.