Arc

What is Arc?

Arc is a finance platform for startups that combines a startup treasury solution with access to non-dilutive growth capital. The company markets itself to founders and finance teams who want to manage operational cash, earn yield on idle funds, and unlock funding based on predictable revenue—without issuing new equity. Arc is a financial technology company, not a bank. Where deposit accounts are offered, they are provided by partner banks, and where investment sweep or money market options are available, those are investment products that are not FDIC insured and may carry risk. Arc’s site emphasizes capital preservation and liquidity alongside transparent cash visibility for early- and growth-stage companies.

Arc primarily targets venture-backed and bootstrapped technology startups, including SaaS businesses with subscription revenue. Availability and product eligibility can depend on business jurisdiction, corporate structure, and underwriting factors. The company focuses on U.S.-based startups, and international availability may be limited or subject to additional requirements. Specific regulatory licenses are not presented as Arc being a bank; any deposit insurance described relates to the partner bank program within applicable limits, while investment products, if used, are subject to market risk. Businesses should review Arc’s disclosures and terms for precise coverage, eligible entities, and geographic limitations before onboarding.

Arc Key Features & Services

Arc’s product set generally centers on two pillars—treasury and capital—supported by a dashboard that helps finance teams monitor balances, model runway, and plan liquidity. Below are the core services as described by Arc’s marketing materials.

Startup treasury built for liquidity and safety needs

Arc offers a treasury experience aimed at startups that want to safeguard operating cash while seeking competitive yield. The platform’s focus is on preserving access to funds—keeping liquidity options clear for payroll, vendor payments, and near-term expenses—while enabling allocation of idle cash to instruments advertised for stability and daily or short settlement liquidity. The proposition is to help companies move beyond a single bank balance and introduce policies around diversification, maturity, and counterparties. For many startups, this means splitting cash between operating deposits and short-duration cash vehicles commonly used by corporate treasurers. Arc’s dashboard centralizes balances so CFOs and controllers can track total cash, allocation by instrument, and upcoming liquidity needs.

Non-dilutive capital for recurring-revenue businesses

For companies with predictable revenue streams, Arc promotes access to non-dilutive funding that converts future receivables into upfront capital. This model is often suited to SaaS and other subscription-based businesses where MRR/ARR and retention metrics can support underwriting. Instead of selling equity, founders can request an advance that is typically repaid from future revenue over a defined period. Arc positions this as a complement to venture funding, bridging cash flow gaps between growth investments and collections. The platform emphasizes speed of decisions, clarity of terms, and alignment with runway planning. Final availability, advance size, and fee structure depend on underwriting and risk assessment conducted by Arc.

Centralized visibility and cash runway insights

Arc’s interface surfaces consolidated balances and historical activity across accounts and instruments supported on the platform. Finance teams can monitor total balances, view allocations, and reference past transactions to reconcile activity. The dashboard experience is designed to aid scenario planning—such as extending runway, timing capital deployment, or rebalancing between operating and reserve cash. While specific integrations and exports vary over time, the general goal is to allow CFOs and controllers to quickly assess liquidity, make policy-driven allocation decisions, and document those decisions for internal controls and board reporting.

Policy-driven diversification and short-duration allocation

A key theme in Arc’s treasury positioning is policy-driven diversification. Rather than keeping all cash in a single operating account, startups can set internal guidelines for how much to maintain in instantly available deposits versus short-duration instruments designed for stability. Depending on the options enabled on the platform, this may involve deposit programs via partner banks, short-term U.S. Treasury exposure, or institutional money market funds. The emphasis is on short duration and daily liquidity, allowing companies to reallocate as needs change. Arc’s messaging underscores clear segmentation of operating funds and reserve funds so teams can target both availability and yield without compromising near-term obligations.

Controls, roles, and basic treasury operations

Arc’s platform supports multi-user access with roles suited to founders, CFOs, controllers, and bookkeepers. At a high level, teams can view balances, review transactions, and manage allocations within the platform’s supported options. Role-based permissions help separate who can view, initiate, or approve certain actions, aiding internal control frameworks common in venture-backed companies. These controls, combined with an auditable activity history, are meant to support documentation requirements during diligence, audits, and board meetings.

Arc Pricing & Fees

Public, line-item pricing for Arc’s treasury accounts and capital advances is not comprehensively disclosed. Pricing often depends on the specific mix of services a company uses, the scale of balances, and underwriting outcomes for any financing.

Where applicable, deposit accounts are typically free to open, though individual transaction fees (for example, wires) may apply depending on the partner bank’s fee schedule. Where investment products are used, any stated yield is generally net of fund expenses and may vary with market conditions. For capital advances, Arc usually prices via a fee or discount rate that depends on advance size, revenue predictability, and term length.

The most reliable way to obtain precise pricing for your business is to contact Arc and provide information on cash balances, expected allocation mix, and revenue metrics for underwriting.

Service area	What’s disclosed publicly	How pricing typically works
Treasury (operating deposits)	No standard monthly fee published; partner bank terms apply	Transaction-level fees may apply per bank schedule; inquire for details
Treasury (short-duration allocations)	Yield varies with market conditions; disclosed in-app	Yield is net of expenses for the underlying instrument; no separate platform fee disclosed
Non-dilutive capital	Terms depend on underwriting and revenue stability	Fee or discount rate based on advance size and duration; custom pricing
International/FX	Not publicly detailed	If supported, FX spreads and transfer fees typically apply; confirm with Arc

If your use case involves international transfers, multi-entity treasury, or larger balances, expect custom pricing and legal documentation appropriate for your structure.

Arc Pros and Cons

• Pros

  • Non-dilutive capital can extend runway without issuing new shares, helping founders avoid equity dilution when bridging cash needs.
  • Policy-driven treasury helps segment operating cash from reserves, aiming for liquidity plus competitive yield on idle funds.
  • Centralized visibility allows CFOs to monitor total cash and allocations in one place, aiding board reporting and scenario planning.
  • Underwriting for recurring-revenue businesses aligns repayments with revenue, which can fit the cash flow profile of SaaS.
  • Platform roles and permissions support separation of duties and documentation that finance teams often need for audits and diligence.
  • Access to deposit accounts via partner banks provides familiar rails while keeping the fintech layer focused on treasury and analytics.

• Cons

  • Arc is not a bank; investment products available through the platform are not FDIC insured and can lose value.
  • Public pricing is limited; companies must engage sales for specifics on fees, yields, and financing terms.
  • Financing availability is not guaranteed and depends on underwriting; businesses without predictable revenue may not qualify.
  • International availability and FX capabilities are not comprehensively disclosed, which may limit use for global entities.
  • Yield and allocation options can change with market conditions, requiring active treasury oversight from the finance team.
  • Companies seeking a full-service bank with branch access, cash handling, or extensive payment operations may need additional providers.

Who Is Arc Best For?

Arc is best for venture-backed and bootstrapped startups that need a modern treasury approach and are exploring non-dilutive capital tied to recurring revenue. It is especially relevant for SaaS and subscription businesses that maintain meaningful operating cash and want to apply a policy-based framework to earn yield on idle balances while preserving liquidity. Finance leaders who manage board reporting, scenario planning, and runway updates can benefit from consolidated visibility and the ability to allocate between operating deposits and short-duration instruments.

Typical profiles include:

• Early to growth-stage SaaS with predictable MRR/ARR and net retention strong enough to support underwriting for a revenue-based advance.
• Startups holding more than basic working capital that want to diversify beyond a single operating account while keeping daily or near-daily liquidity.
• Companies planning fundraising but wanting optionality—using non-dilutive capital to bridge milestones rather than issuing equity immediately.
• Finance teams that value role-based access and an audit trail for internal controls without adopting a complex enterprise treasury system.

Arc may be less suitable for businesses that require cash logistics, physical branches, or high-volume payment processing as a core need. Companies with highly volatile or project-based revenue may find non-dilutive advances less applicable. Multinational organizations needing extensive multi-entity, multi-currency bank infrastructures and deep ERP integrations may find they still need a separate global banking stack alongside Arc.

Arc Alternatives

• Brex – Better for companies that prioritize integrated corporate cards, spend controls, and bill pay alongside a cash management account. Brex combines expense management and cards with a startup-friendly banking experience, making it a stronger fit if your main need is team card issuance and control rather than non-dilutive financing.

• Mercury – Suitable for startups seeking a digital banking experience with FDIC-insured checking/savings via partner banks, plus treasury options and developer-friendly tools. Mercury can be a fit if you want a primary operating account with intuitive payment operations and built-in tools for startups, and do not require revenue-based financing.

• Rho – Geared toward finance teams that want corporate cards, AP automation, and treasury under one roof with robust approval workflows. Choose Rho if accounts payable, spend management, and card-based controls are the priority and you also want access to a treasury product, with less emphasis on non-dilutive capital.