Berlin-based fintech company re:cap has announced a €125 million credit facility with plans to expand its operations to the UK, a move supported by HSBC Innovation Banking and Avellinia Capital. This step marks the company’s commitment to providing innovative financing solutions for tech companies, allowing founders more flexibility in accessing growth capital through its Capital Operating System (Capital OS). The company’s expansion into the UK tech funding market is a pivotal development aimed at improving financial strategies amidst changing conditions in the tech industry.
In past announcements, re:cap has consistently focused on financing tech startups seeking alternatives to traditional bank loans, which are typically inaccessible to early-stage companies. With the addition of new financial backing from Avellinia Capital, re:cap aims to enhance its offerings and support growth tech firms in countries like Germany, the Netherlands, and the UK, by addressing the financial hurdles they face. Historically, the fintech sector has often struggled with aligning real-time data analytics with financing solutions, a barrier that re:cap’s platform aims to overcome.
What Does the UK Expansion Mean for Tech Startups?
The UK expansion introduces re:cap’s financing model to a broader audience, particularly those reevaluating funding mechanisms due to market fluctuations, including valuation challenges. re:cap’s Capital OS provides a non-dilutive funding approach, offering comprehensive tools for financial planning and capital deployment. This expansion reflects the broader trend of tech firms diversifying their approaches to financial management.
“We are extremely happy to continue to work with the company and welcome Avellinia Capital as an additional financing partner,” remarked Phill Lovett, Head of Structured Finance at HSBC Innovation Banking, highlighting the strategic partnerships underpinning re:cap’s growth ambitions.
How Has re:cap Positioned Itself in the Market?
re:cap was founded in 2021 by Paul Becker and Jonas Tebbe, and it has rapidly become a significant player in the fintech landscape, focusing on providing a structured capital access model for the digital economy. The Capital OS integrates real-time company data to offer tailored debt capital solutions, focusing on liquidity management, financial forecasting, and closing financing gaps.
Julian Schickel, Avellinia Capital’s founding partner, stated, “re:cap is solving a major headache for tech founders,” emphasizing the innovative approach re:cap takes in an often rigid financial environment.
The platform has facilitated more than €100 million in lending to high-growth companies in Germany and the Netherlands without defaults, supported by investors such as Entrée Capital and Felix Capital. These figures underscore the scalability and reliability of re:cap’s model as it ventures into the UK market, providing both new and existing clients with robust financial tools and resources.
The €125 million credit boost aligns with re:cap’s mission to help tech startups and scaleups manage financial operations without sacrificing equity or being tethered to traditional lending constraints. This integration of real-time analytics within its financing model is poised to support sustainable growth, reflecting a broader financial trend offering companies more control over their financial trajectories.
