re:cap enters UK market with EUR €125m facility for tech
Berlin-based fintech lender re:cap has announced its expansion into the UK, backed by a new EUR €125 million credit facility from HSBC Innovation Banking and Avellinia Capital, to extend its debt funding operations for technology companies.
re:cap offers a platform that supports debt funding and capital management specifically tailored for tech companies, with over EUR €100 million already deployed to startups in Germany and the Netherlands and a reported track record of zero defaults to date.
UK arrival
The move into the UK marks a significant step for re:cap, given the country's status as the world's second-largest tech funding market. The launch of the EUR €125 million credit facility is intended for onward lending to UK-based tech companies seeking flexible funding options in the wake of rising interest rates, tighter valuation environments, and increased investor scrutiny.
The company's Capital OS platform is aimed at enabling high-growth technology businesses to scale with less reliance on equity-based fundraising or the limitations of traditional bank lending. By integrating flexible debt, real-time liquidity management, and capital planning tools within one interface, re:cap seeks to provide founders and CFOs with more comprehensive control over their financial operations.
Paul Becker, CEO and co-founder of re:cap, commented on the expansion:
"Over the past four years, our platform has helped hundreds of tech companies in Germany and the Netherlands scale efficiently – with zero defaults and full transparency. Now we're bringing that same infrastructure to the UK, supported by more capital than ever, provided by our strong existing and new partners."
The strategic entry into the UK is supported by HSBC Innovation Banking and Avellinia Capital, who will provide the financial backing for the facility, alongside re:cap's operational technology platform for capital deployment and management.
Backing from financial partners
Phill Lovett, Head of Structured Finance at HSBC Innovation Banking, said:
"It has been a privilege to partner with re:cap since 2022, providing warehouse funding to enable the business to build a high performing loan book underpinned by re:cap's market leading credit decision-making software. We are extremely happy to continue to work with the company and welcome Avellinia Capital as an additional financing partner. Together, we will provide a scaleable source of finance to enable continued growth across Europe and the UK."
Julian Schickel, Founding Partner at Avellinia Capital, also welcomed the collaboration, stating:
"re:cap is solving a major headache for tech founders. Traditional banks rarely lend to startup and growth tech companies and venture debt is usually only available for later stage companies. With re:cap, tech companies can easily and flexibly receive growth capital, while benefiting from a powerful real-time analytics platform. We're pleased to commence our collaboration with re:cap, leveraging an innovative financing structure, as we enter this next phase together."
Expansion strategy
Management at re:cap sees the UK launch as pivotal to its ambitions of becoming the primary system of record for capital access and management among tech company founders and CFOs across Europe. By integrating capital planning and real-time analytics, re:cap aims to develop infrastructure that supports more data-driven and efficient forms of financing, in contrast to traditional equity-based fundraising or bank loans.
The origins of re:cap trace back to when co-founders Paul Becker and Jonas Tebbe identified a gap for integrating capital access and financial planning during consultancy work at a private equity firm. Building on this insight, they sought to combine real-time analytics with flexible capital, which led to the development of the Capital OS product. The founders previously built LIQID, a digital wealth manager in Europe.
Since its German launch in 2021, re:cap has distributed more than EUR €100 million in financing, reflecting what it describes as the robustness of its credit decision-making and underwriting criteria. Institutional investors have reportedly shown confidence in the company's track record, including the milestone of zero defaults.
Future outlook
With its new facility and UK market presence, re:cap intends to facilitate European technology companies in optimising their capital structures by offering non-dilutive capital alongside integrated financial planning tools. Its platform is designed to support a variety of funding requirements, from extending runway to providing financing ahead of profitability.
The company asserts that demand for alternative financing models is set to grow, amid changing market conditions and an industry-wide focus on capital efficiency. re:cap aims to harness this momentum and continue expanding its role as a capital provider and infrastructure partner for high-growth technology firms navigating the current funding climate.