Berlin-based fintech re:cap has launched in the UK and secured a new €125million credit facility to offer flexible debt financing to tech companies, backed by HSBC Innovation Banking and Avellinia Capital.
The company, which offers a platform for debt-based funding and capital management, says the expansion will support UK startups and scale-ups looking for alternatives to traditional equity financing.
The UK launch comes amid growing demand for non-dilutive funding options, particularly as startups face tighter investor scrutiny and rising borrowing costs. re:cap’s platform, known as the Capital Operating System, combines access to debt financing with tools for real-time liquidity planning and capital tracking.
Positioned as an alternative to venture debt and conventional loans, the company targets early- and growth-stage tech firms aiming to manage capital more efficiently.
re:cap will offer flexible credit to UK-based companies through the €125million facility, managing both the platform and underwriting, while HSBC Innovation Banking and Avellinia Capital supply the capital. Since launching in 2021, re:cap has deployed over €100million in Germany and the Netherlands, and reports no defaults to date. The company’s entry into the UK marks its first expansion outside the EU.
UK approach
The move into the UK comes as startups face tougher conditions in one of the world’s largest tech funding markets. re:cap says it is building toward a future where capital, planning and execution live in one system.
The company was founded in 2021 by Paul Becker and Jonas Tebbe, who previously co-founded LIQID, a digital wealth manager. re:cap emerged from a private equity consulting project where the founders identified a gap between capital access and financial planning.
“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,” said Becker, CEO and co-founder of re:cap. “Now we’re bringing that same infrastructure to the UK, supported by more capital than ever, provided by our strong existing and new partners.”
Building partnerships
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 added: “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.”
