Arc Launches Yield and Raises Rates to 4.00% APY, an Expansion of Arc Treasury

The launch expands Arc’s suite of dilution-free funding, digital banking, and spend management tools built to accelerate access to growth capital for startups

Arc, the future of startup finance, today announced the launch of Yield, a product extension of Treasury, and increased payouts to 4.00% APY. Yield comes with all the startup banking essentials including free money movement, unlimited cards, scheduled payments, and customizable spending controls. Unlike traditional high-yield accounts, funds aren’t swept into external Money Market Accounts or complex illiquid investments; instead, they are stored within a chartered bank that’s a member of the Federal Reserve System. As such, funds remain FDIC insurance-eligible, generate yield immediately, and are fully liquid. Arc Yield has no management or maintenance fees, which enables startups to maximize the return on their idle funds.

Arc was founded to help startups grow, and with the launch of Yield, startups can now unlock non-dilutive funding, securely store funds, tap into Arc’s investor and partner network, and access a host of advisory services such as fundraising prep, GTM, and product strategy—all in one integrated platform. In addition, returns from Yield are tracked in a dedicated dashboard, and preferred allocations between operating and yield-bearing accounts can be configured with the click of a button.

“In today’s macro environment, earning yield on idle cash can be a key advantage for startups looking for ways to extend their runway and avoid layoffs,” said Don Muir, CEO & Co-Founder of Arc. “We eliminated balance tiers and caps tied to APY, so startups earn 4.00% on their entire yield deposit balance. We eliminated the need for sweeps to earn yield, so startups’ funds remain FDIC-insured and can be withdrawn by founders at a moment's notice,” continued Don Muir.

“Arc has always been a partner that we can rely on,” said Taylor Lint, CEO & Founder of Swantide. “Yield enables us to earn a more meaningful return on our idle cash while alleviating the stresses of day-to-day market volatility. The difference between what we were earning in a traditional bank and Arc’s bank account has been enough to hire an additional engineer and meaningfully extend our runway.”

“I chose Arc because they focus on security and service,” said Tommy McNulty, CEO & Founder of Rhythm. “I trust that my money is safe, and I know I would be taken care of immediately should anything happen. We have a dedicated point of contact who understands our business and is there for us no matter what.”

Since launching in 2021, Arc has allocated tens of millions of dollars in non-dilutive funding to high-growth software startups, curated a community of 1,000+ startups, and built a backlog of hundreds of millions in deposits. To learn more about Yield and apply for an account, visit: arc.tech/yield

About Arc

Arc is the future of startup finance. Founded in 2021, Arc provides startups with the financial products they deserve. Arc converts startups’ future revenue into upfront capital, provides a cash management account to store, manage and spend funds, and delivers financial analytics to drive growth. The company is based in San Francisco and is funded by Left Lane Capital, NFX, Bain Capital Ventures, Clocktower Technology Ventures, Torch Capital, and Y Combinator, among others. To learn more, visit www.arc.tech.

Note: Arc is a financial technology company, not a bank. Banking services provided by Evolve Bank & Trust®; Members FDIC. Yield paid by Arc is subject to change over time based on market conditions. Today's yield reflects the Annual Percentage Yield (APY) paid by Arc to customers.

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