Neobank Arc Launches Arc Capital Markets to Fill SVB Gap

Learn how Arc Technologies is addressing the void left by the collapse of SVB by introducing a venture debt platform for startups.

Arc Technologies, a leading neobank, has announced the expansion of its services to include venture debt for startups. The new marketplace, Arc Capital Markets, aims to connect startup firms with lenders in the venture capital space, providing a solution for the void left by the collapse of SVB, the de facto bank for Silicon Valley startups.

According to Arc CEO and co-founder Don Muir, the platform has already received a strong response since its official launch last week. Within 72 hours of the launch, Arc Capital Markets received an impressive $500 million worth of applications from tech startups seeking lenders. The platform currently boasts a network of around 100 banks, offering free indicative term sheets for borrowers. Companies that choose to move forward with one of the sourced term sheets are charged a 1-2% fee total, paid over time.

In addition to its venture debt services, Arc Technologies partners with Stripe for money transmission services, while Goldman Sachs and Evolve Bank & Trust hold customer funds. The platform is structured to favor companies that decide to store and manage their cash with Arc, offering preferred pricing on the capital product for firms that choose to bank with Arc.

Arc Technologies' expansion into venture debt through Arc Capital Markets provides a much-needed solution for startups seeking access to capital. With a strong response from the market and a growing network of lenders, the platform is poised to make a significant impact in the venture capital space.