← Embedded Finance Index 2026

Arc

“Can a venture-backed startup banking platform out-Mercury Mercury by owning the debt-raise workflow on top of treasury and yield?”

Founded2021
HQSan Francisco, CA, USA
FoundersDon Muir
Total raised$181M+ (incl. $150M debt facility)
Latest roundSeries A, 2022
IndustryFintech / SMB banking
The story

Founded in 2021 as a SaaS-startup-focused digital banking platform, Arc launched on Stripe Treasury rails with Arc Advance, a revenue-based financing product converting future SaaS revenue into upfront capital. Over 2023-2024 it pivoted away from being the direct lender toward a debt marketplace (Arc Capital Markets) that brokers introductions to third-party lenders, while continuing to operate Treasury cash management with yield via money market funds and T-Bills through Atomic Brokerage and its own RIA, Arc Advisory LLC. Today Arc positions itself as a financial OS for venture-backed tech companies — cash management + debt marketplace + AI-driven capital intelligence.

Last 12 months
—
Product timeline
2021
Arc founded in San Francisco by Don Muir and team· founding
2022
Emerged from stealth with $150M debt facility, $11M seed, and Stripe partnership; Y Combinator graduate; raised $20M Series A led by Left Lane Capital· funding
2023
Launched Arc Advance Plus (hybrid venture debt / revenue-based financing), later renamed Working Capital· lending
2024
Launched Arc Capital Markets — outsourced debt-raise marketplace for startups· lending
2025
Treasury product expanded with money market funds, T-Bills, mutual funds via Atomic Brokerage and Arc Advisory LLC· banking
Regulated entities
1
regulatory licence held by Arc
Licence types, jurisdictions and registered entities are in the Embedded Finance Index report.
The stack
6 layers disclosed in Arc’s embedded-finance stack
Payments / PSP
Stripe
Banking / BaaS
in the full report
Card issuing
in the full report
Lending
in the full report
Sponsor bank
in the full report
Investing
in the full report
Accounting gap: none
11 more providers across 5 layers, with confidence-scored evidence and source URLs, are in the Embedded Finance Index report.