re:cap and HSBC launch new long-term debt funding product

Today, re:cap, the leading alternative debt funding provider in Germany and the Netherlands, announces the launch of its new long-term debt funding product, supported by HSBC Innovation Banking UK. The product will enable recurring revenue businesses to access a long-term financing option tailored to their funding needs.

It includes customisable grace periods that can last from months to years as well as individual usage times and payback periods, allowing companies to receive repayment horizons of up to five years.

“In the past 18 months, we’ve worked with hundreds of tech companies on their funding needs. We’ve seen a huge demand for long-term yet customisable debt funding products. Such solutions enable tech businesses to reach their goals, such as becoming profitable, optimising equity funding rounds, or making strategic mergers and acquisitions”, says Paul Becker, Co-Founder and CEO of re:cap. 

Demand for long-term yet customisable debt funding products

“With HSBC Innovation Banking we have built a strong partnership with a global bank, enabling us to launch this long-term debt funding product, functioning as a customer driven solution to their long-term financial needs. With this offering, companies receive the unique opportunity to adjust their funding plan as the business and market evolves”, adds Becker.

The announcement comes at a pivotal time for startups and technology companies. The current VC funding environment, which is especially difficult for companies from Series A up to later stages, has led to a high demand for alternative funding sources.

Supporting emerging tech companies in managing their runway and capital needs

“We’re excited to see re:cap launch such an important product, which will support emerging tech companies in managing their runway and capital needs during these more challenging economic times. The need in the market is incredibly high and the re:cap team continues to innovate and find ways to best address the needs of their clients. We also understand the difficulties founders face, and are excited to see re:cap support them in line with our mission” says Conor Sheehy, Managing Director of HSBC Innovation Banking UK.

Since its foundation in 2021, re:cap has built up a proven and successful funding alternative for tech companies with recurring revenues. The company has grown its outstanding funding by 4.5x in the last 12 months. Besides launching the long-term debt product, re:cap is now also expanding its market size. Next to software companies, the funding provider will also be able to serve the professional services market, including, for example, advertising and PR agencies, consultancies, and IT service companies. This showcases further growth potential as it represents a large, untapped market opportunity for alternative funding products.