ArK Kapital, a data-driven precision finance startup, raised 165 million euros ($183 million) in seed capital, the Stockholm-based company announced Tuesday (March 29), EU-StartUps.com reported.
The new funding will be used to invest in promising companies, research and development and double its 20-person team this year, ArK said.
Local Globe led the funding with participation from Creandum and angel investors EQT Ventures founding partner Hjalmar Winbladh, Supercell CEO Ilkka Paananen and iZettle founder Jacob de Geer.
Launched in November, the company blends artificial intelligence (AI) and banking to enable technology companies to grow faster and smarter through long-term financing while maintaining control for entrepreneurs and limiting investor risk.
“We believe that entrepreneurs should retain more ownership of their companies and more transparency is needed throughout the fundraising process,” said CEO and Co-founder Oliver Hildebrandt in a statement.
Companies can benefit from tailored financing based on their potential, backed up by data, he added.
ArK focuses on early-stage tech companies with prospects for speedy growth but are not yet profitable. The company uses an AI platform to examine a company’s business health and to offer a series of AI-powered financial and intelligence tools. It then shares daily access of its analytics and insights in a borrower dashboard, so companies can optimize their business performance.
Earlier this month, Sam Strasser, CEO at Treasure Financial, told PYMNTS that every company is wasting money in some way or another, and it boils down to the solvency of the company in the long run.
Read also: Startups Lack Tools to Build, Monetize Cash Reserves
The FinTech, which provides B2B cash management solutions, launched a product that promises to help businesses make better use of their idle cash.
The company said the solution, dubbed Treasure Cash, will help customers earn 15 times more than they’re likely to be getting from their bank, with 10 times more FDIC insurance.