re:cap

Just got back from a week outside of Lisbon with the re:cap team. And what a week it was! The days went into workshops that set us up for continued success: agentic credit origination, programmatic fund operations, putting repetitive customer communications on autopilot, and the AI stack underneath it all. Our breaks and evenings looked different: a hike through Tapada de Mafra, a lunch break yoga session, an Indian dance workshop nobody escaped (thanks Verónica Gomes), games and a movie night, pool, and a last-night party. As a fully remote company, we've had our fair share of onsites. This one was different: having the team come together in one house creates closer connections. Eating together, discussing thoroughly, laughing face to face – this becomes even more valuable if you don't sit next to each other every day. Portugal, obrigado.

Some costs of a bad funding decision never show up on a term sheet: optionality, sleep, and the feeling of still being in control of your company. That's the part our co-founder and CEO Paul says doesn't get discussed enough. He went deep on it with Alexander Theuma on The AI Revolution Show, along with a few other things we've been thinking about: → Why most alternative funding competitors disappeared, and how re:cap kept building a VC-backed non-dilutive funding business through it. → The "SaaSpocalypse" question. Paul's view on which tech and SaaS companies are still financeable, and why gross margins might matter more than ARR numbers. → AI inside re:cap: where it actually changed how the team works. One example: a week of junior research compressed into two hours and a sharp prompt. → Why lending stays a relationship business. AI makes us faster, but some parts of the work stay human on purpose. Worth a listen if you're weighing equity, debt, or both. Link to the episode: https://lnkd.in/e-d5d2uW

New: Fundability check ✨ “Am I even fundable?” is a question we get a lot. You can now quickly check this with re:cap. → Add 5 metrics about your company and funding need → See your fundability with explanation It’s all based on the metrics that actually drive our credit decisions. You get clarity on where you stand and what to do next – without wasting any time. If you have ever wondered if your company is fundable: now you can find out in 60 seconds. Try it: https://lnkd.in/e4QFZPHp

We’re hitting the road this week. Onstage, SuperNova, Turing Fest, SaaStock: the re:cap team will be out meeting founders, investors, and operators at some great events. If you’re around, come say hi to James, Simon, Arne, Lukas, or Paul. They're always up for a good conversation on growth, funding, and what’s next.

On March 24 in Berlin, Onstage VC is bringing together 50 of Germany's best early-stage AI founders as part of their European Tour. Together with Merantix Group, Earlybird Venture Capital, and Atlantic, we're supporting Onstage VC in this event. We’ll keep a light format: → 3 speakers × 15 mins → Short panel + Q&A → Open networking at the Merantix AI Campus This is an evening for stealth, pre-seed, and early seed founders only. 📅 Applications close: March 13 If you're building in AI and want to connect across the full stack, apply here: https://lnkd.in/dAvHfGdH (Berlin)

Thanks to everyone who joined our Road to Series A dinner yesterday! A big thanks to Nicolas Heymann from Kittl for sharing his experience. And a special shoutout to our partners Unicorn Bakery and torq.partners finance. Onto the next event: SaaStock Founders Dinner in London 🤝

Runway, growth, leverage ratio: What signals do startups seeking debt actually show? We analyzed 4,000 companies on our platform to give a sense of how metrics can look like. The numbers represent an average company. 1/ Runway: 22.08 months 2/ Revenue growth (YoY): 21.01% 3/ Leverage ratio: 1.62 The one thing to remember: think about debt early. By the time you need it, optionality is gone.

Say Hi to our Agents 👋 They run autonomously on a schedule you set, so work keeps moving while you take care of other things. Pick from pre-built agents which are ready to use, or build your own custom agent. Either way: You set a schedule and the analysis lands right in your inbox. What they do for you (and more): – Runway analysis – Cash collection analysis – Unmatched transfer reconciliation – Accounts receivable analysis Give it a try: https://lnkd.in/die_jnZd

Imagine: Fund the next 18 months of growth without touching your cap table. For most founders, debt still feels like something you only consider when equity isn't an option. However, that's the old model. New financing structures are purpose-built for tech economics: flexible credit lines and debt that doesn't require traditional profitability. The questions most founders have: – What metrics do I need to access this capital? – How do I model debt vs. equity with real numbers? – When do I move from flexible financing to larger facilities? – How do I structure a capital stack that balances growth and efficiency? On February 05, we're answering these questions with people who work on them every day: → Oliver P. (Founder, yetipay): How he scales his company with £1.75M flexible credit line to fund CAC and avoid dilution → Marielle Zoe Meyer (Altimapa Capital): Advising and connecting companies to a network of institutional lenders → Lukas Tenschert (re:cap): Building scalable, non-dilutive financing that grows with a company If you're thinking about your capital stack strategy and don’t want to dilute, this is worth your time. 📍 Home House, London | 6pm 🎟️ https://luma.com/xo43m8w1

𝐖𝐡𝐚𝐭 𝐝𝐨 𝐥𝐞𝐧𝐝𝐞𝐫𝐬 𝐚𝐜𝐭𝐮𝐚𝐥𝐥𝐲 𝐥𝐨𝐨𝐤 𝐚𝐭 𝐰𝐡𝐞𝐧 𝐚𝐬𝐬𝐞𝐬𝐬𝐢𝐧𝐠 𝐜𝐫𝐞𝐝𝐢𝐭𝐰𝐨𝐫𝐭𝐡𝐢𝐧𝐞𝐬𝐬? The answer is pretty simple: repayment capacity. That's it. That's the foundation. However, repayment capacity isn't just about having cash in the bank today. It's about demonstrating you'll have the means to pay back debt when it comes due. Our CEO Paul broke this down in the latest ARRtist podcast episode with Matthias Ernst. 𝐓𝐡𝐞 𝐭𝐰𝐨 𝐩𝐚𝐭𝐡𝐬 𝐭𝐨 𝐫𝐞𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐜𝐚𝐩𝐚𝐜𝐢𝐭𝐲 1. A future funding round If you're on a clear growth trajectory with investor interest, lenders can underwrite against that next raise. But this only works if the round is realistic and well-timed. 2. Free cash flow This means profitability paired with enough liquidity to service the debt. The business generates more than it burns, and there's cushion to repay without stress. 𝐓𝐡𝐞 𝐦𝐞𝐭𝐫𝐢𝐜𝐬 𝐭𝐡𝐚𝐭 𝐦𝐚𝐭𝐭𝐞𝐫 Lenders look at sustainability and margin of safety. The metrics need to reflect this too. → Runway: If your runway, based on current burn and cash balance, extends well beyond the repayment period, that's a strong signal. It shows you're not operating on fumes. → Revenue growth: Growth isn't just about top-line numbers. It's about momentum. Are you expanding in a way that's sustainable, or are you bleeding cash to chase growth? → Profitability of revenue model: Gross margin, revenue retention and stability – this is where the real scrutiny happens. All of these are indicators of business health, resilience, and fundability. 𝐖𝐡𝐲 𝐭𝐡𝐢𝐬 𝐦𝐚𝐭𝐭𝐞𝐫𝐬 𝐟𝐨𝐫 𝐟𝐨𝐮𝐧𝐝𝐞𝐫𝐬 If you're considering debt as part of your funding strategy, understanding how lenders assess creditworthiness gives you leverage. You can position your business more strategically, address gaps proactively, and secure better terms. At re:cap, we've built our underwriting around these principles, helping tech companies access flexible, non-dilutive capital that aligns with their growth stage and financial reality. Listen to the full episode where Paul dives into how re:cap assess risk and how we evolve from a pure funding provider into a platform for planning and raising capital. Here's the episode: https://lnkd.in/dBeZX-Pf