ArK Kapital announces an extension of USD 152 million to the lending pool
Swedish fintech ArK Kapital has announced an expansion of its lending pool following events that take place in the current economic climate.
Launched in 2021, Fintech enables startups to grow by offering friction-free long-term load based on risk-assessed data. The finance company’s services allow entrepreneurs to maintain control over their start-up, while the loan conditions reduce the risk for investors.
According to reports, the expansion of USD 152 million to the lending pool has been introduced in response to strong traction in the Nordic markets and will be used to drive European expansions.
The $ 152 million extension also means that ArK Kapital can offer over $ 300 million in loans to European technology entrepreneurs. Data shows that the first initial round of $ 168 million was $ 152 million debt-based and $ 15 million equity-based. The share portion of the round was led by LocalGlobewith participation from Creandum and angel investors including the founders of iZettle, Supercell, Kingand EQT Ventures. This expansion comes as a response to strong traction in the Nordic markets and will be used to contribute to European expansion.
Lending based on AI analysis
ArK is the only capital player that has confidence in lending with the type of risk posed by the growth loan, which is attributed to an artificial intelligence (AI) maturity that is rarely found in the capital market.
Fintech was launched by the CEO Oliver Hildebrandtveteran banker Axel Bruzelius (COO), and Spotify’s former VP of Analytics and former EQT Ventures partner Henrik Landgren (CPTO).
Henrik was involved in building Motherbrain, EQT Ventures’ AI platform that reveals promising, yet sub-radar investment opportunities. The solution offers AI-based tailor-made loans with a duration of up to seven years.
ArK Kapital enables rapid growth for early, technology-driven companies without losing equity by using its AI platform – ArK Intelligence Machine (AIM) – to analyze a company’s business health and design customized loans on fair terms. The platform also shares daily updates of the analyzes and insights in a dashboard for the borrower, so that companies can optimize business performance through ArK’s API – which expands access to top-level computer science.
A solution for cash-strapped technology startups
Speaking of the latest move, Landgren explained: “We are right in the eye of the current storm. We are honestly the only ones offering a real alternative to equity financing, with large loans spanning several years. Therefore, it is put more money in our pockets so early, as the demand is so great.However, getting funds from us should not be seen as a lifeline, but a sign of strength.We take a DNA test of corporate growth; if they get a loan, it means that they show the kind of growth the entire capital market is looking for. “
Hildebrandt added: “AIM, and our AI-driven, always-connected approach to underwriting seems to be exactly what the financial markets have been waiting for, enabling us to integrate more and more financial partners into the AIM platform, and unlock more growth money for the European founding society. “
