An acqui-hire is the purchase of a company for their employees rather than their product/service. Acqui-hires are typically completed in tech startups due to the fierce competition for talent and the general lack of capital constraints—e.g. the going rate for an engineer is often more than $1 million. Google, Facebook, Apple, Twitter, Hubspot, and Dropbox are just a few of the large tech companies that have recently completed an acqui-hire.
An Arc Advance, also known as a merchant cash advance, or receivables financing, is a form of revenue based financing that enables startups to fund their growth, by converting future revenue into upfront capital. With an Arc Advance, startups can receive up to $50M in funding without debt or dilution, so they can accelerate their growth and extend their runway.
The Arc Card is a flexible corporate card for fast-growing companies. It comes with a simplified rewards program, unparalleled control and visibility, credit lines that grow with you, and a remarkably simple interface. With the Arc Card, best-in-class comes standard.
Arc Runway provides financial insights in minutes, so you can analyze your net cash burn and efficiently deploy your capital to maximize your runway. By leveraging the insights from Arc Runway, you can weather a changing macro environment, and maintain ownership, control and operating flexibility.
Arc Treasury is the software bank for SaaS startups with the scale, speed, and flexibility that you deserve. It's built on top of industry-leading rails, meaning you benefit from the latest tech without any of the traditional drawbacks. With Arc Treasury, you can onboard in minutes and access funding in just seconds.
“Asset Lite” refers to the amount of assets on a business's balance sheet. A business that is considered “asset lite” has little to no depreciating assets on their balance sheet. Businesses with an asset-lite business model typically delivers a better return on assets, lower profit volatility, and greater flexibility, compared to asset-heavy models. Examples of asset-lite businesses include: Airbnb, Uber, Lyft, Doordash, Instacart, and Postmastes.
The maximum number of shares that a company is allowed to issue, based on its articles of incorporation, is also known as its authorized shares. A company's outstanding shares can never exceed its number of authorized shares. The total number of a company's outstanding shares is the sum of the float (the number of shares actually available to trade) and the restricted shares (reserved for employee compensation and incentives).
Automated Clearing House (ACH)
The Automated Clearing House (ACH) is a standardized computer-network that facilitates the transfer of funds between tens of thousands of participating financial institutions. It consists of direct deposits and direct payments between businesses, governments, and consumers. The ACH system was designed to process payments in batches to reduce fees—which according to an article by Payments (“How Long Does an ACH Transfer Take?”) resulted in more than $55 trillion in transactions in 2019.