re:cap Expands to UK With €125M HSBC-Backed Tech Credit

HSBC-backed fintech platform expands UK tech lending with new credit facility to support growing startups amid market pressures

Key Takeaways

• €125 million credit facility launched by Berlin-based fintech re:cap for UK tech companies, backed by HSBC Innovation Banking and Avellinia Capital
• Zero defaults across €100 million deployed in Germany and Netherlands since 2021, demonstrating robust underwriting capabilities
• Non-dilutive financing targets companies with €1-15 million ARR, offering alternative to equity funding amid rising interest rates and valuation pressures

Introduction

Berlin-based fintech re:cap expands into the UK market with a €125 million credit facility, marking a significant entry into the world’s second-largest tech funding market. The facility, backed by HSBC Innovation Banking and Avellinia Capital, provides UK technology companies with non-dilutive financing through the company’s Capital OS platform.

This expansion addresses growing demand for alternative financing as UK startups face higher interest rates, valuation pressures, and stricter investor scrutiny. The platform combines flexible debt funding with real-time capital planning tools, targeting tech companies with annual recurring revenues between €1 million and €15 million.

Key Developments

re:cap’s UK launch centers on its Capital OS platform, which integrates flexible debt, real-time liquidity management, and capital planning into a unified solution. The platform serves tech companies with minimum €1 million annual recurring revenue, providing founders and CFOs comprehensive control over capital raising and deployment.

The company evolved from its initial revenue-based financing model launched in 2022 to long-term financing partnerships with institutional investors. This pivot reflects market demands for more sustainable funding solutions beyond traditional venture capital or bank loans.

Co-founders Paul Becker and Jonas Tebbe developed the concept while consulting for a private equity firm on digital due diligence. Their previous experience creating LIQID, a leading European digital wealth manager, informed their approach to integrating real-time financial tools with capital access.

Market Impact

The UK expansion significantly increases re:cap’s lending capacity, building on its track record of deploying over €100 million across Germany and the Netherlands. The company maintains a zero default record, demonstrating the effectiveness of its data-driven underwriting approach.

UK tech companies gain access to financing directly linked to operational metrics, supporting growth needs while maintaining financial agility. This addresses a critical gap where traditional banks rarely lend to unprofitable tech companies, and venture debt typically remains available only for later-stage companies.

The timing aligns with challenging market conditions that have increased demand for non-dilutive funding options among UK startups seeking to preserve equity ownership.

Strategic Insights

re:cap’s model targets the gap between early-stage equity funding and traditional bank lending. Companies with product-market fit but not yet profitable represent an underserved segment, particularly SaaS businesses with predictable recurring revenues.

The integrated approach combining funding with financial management tools differentiates re:cap from traditional lenders and pure-play fintech solutions. This positions the company to capture market share as tech companies seek comprehensive financial infrastructure.

The partnership structure with HSBC Innovation Banking provides institutional credibility while Avellinia Capital brings additional financing expertise. This combination enables scalable growth across European markets beyond the initial UK focus.

Expert Opinions and Data

Paul Becker, CEO and co-founder of re:cap, emphasizes the platform’s proven performance: “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.” According to Finextra, this funding is designed to help startups grow via flexible, data-driven financing solutions.

Phill Lovett, Head of Structured Finance at HSBC Innovation Banking, highlights the partnership’s evolution: “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.”

Julian Schickel, Founding Partner at Avellinia Capital, notes the market opportunity: “re:cap is solving a major headache for tech founders. Traditional banks rarely lend to startup and growth tech companies.” The company’s backing from prominent investors including Entrée Capital, Felix Capital, Project A, and Mubadala Capital demonstrates institutional confidence in the model.

Conclusion

re:cap’s UK expansion represents a strategic response to evolving funding needs in the European tech ecosystem. The €125 million facility provides substantial firepower to serve UK companies while the platform’s integration of financing and financial management tools addresses operational challenges beyond simple capital access.

The company’s zero default record and institutional backing position it to capture significant market share as tech companies increasingly seek alternatives to equity dilution. This launch establishes re:cap as a key player in the shift toward data-driven, non-dilutive financing for European technology companies.