ArK Kapital announces $152 million expansion to its loan pool

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Swedish fintech ArK Kapital has announced an expansion of its loan pool following events in the current economic climate.

Fintech, which launched in 2021, enables startups to grow by providing frictionless long-term charges based on risk-assessed data. The finance company’s services allow founders to maintain control of their startup, while loan terms also reduce risk for investors.

According to reports, the US$152 million extension to the loan pool was introduced in response to strong traction in Nordic markets and will be used to help spur European expansions.

The $152 million extension also means ArK Kapital can offer more than $300 million in loans to European tech founders. The data shows that the initial round of $168 million was $152 million debt-based and $15 million equity-based. The equity portion of the round was led by LocalGlobewith the participation of Creandum and angel investors, including the founders of iZettle, Supercell, Kingand EQT Ventures. This expansion comes in response to strong traction in the Nordic markets and will be used to help fuel European expansion.

Loans based on AI analysis

ArK is the only capital player with the confidence to lend with the kind of risk posed by growth lending, which is attributed to an artificial intelligence (AI) maturity rarely found in the capital market.

Fintech was started by the CEO Olivier Hildebrandtveteran banker Axel Bruzelius (COO), and former VP of Analytics at Spotify and former partner at EQT Ventures Henrik Landgren (CPTO).

Henrik helped build Motherbrain, EQT Ventures’ artificial intelligence platform that uncovers promising but little-known investment opportunities. The solution offers bespoke AI-powered loans for up to seven years.

ArK Kapital enables rapid growth for technology-focused start-ups without losing equity by using its artificial intelligence platform – the ArK Intelligence Machine (AIM) – to analyze a company’s business health and design personalized loans on fair terms. The platform also shares daily updates of its analytics and insights in a borrower dashboard, so businesses can optimize their business performance through ArK’s API, expanding access to high level data science.

A solution for cash-strapped tech startups

Speaking about the latest decision, Landgren explained: “We find ourselves right in the eye of the current storm. We are honestly the only ones to offer a true equity financing option, with large loans spanning multiple years. That’s why more money is put in our pockets early on because the demand is so high. Obtaining funding from us, however, should not be seen as a bailout, but as a sign of strength. We do a DNA test of business growth; if they get a loan, it means they are showing the type of growth that the entire capital market is looking for.

Hildebrandt added: “AIM, and our AI-based, always-connected approach to underwriting seems to be exactly what financial markets have been waiting for, allowing us to bring more and more financial partners onto the platform. AIM, unlocking more growth money for the European founder community.”

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