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USE CASE

Extend your runway and postpone your equity round

Build a cash buffer to extend your runway, giving you more time to reach break-even and secure better terms for your equity round. This strategy allows you to raise funds at a more convenient moment, with a higher valuation and less dilution.

Calculate your funding terms
Preserve runway

Strategically leverage re:cap to cover ongoing costs and maximize your runway.

Reach profitability

Optimize your cash flow and accelerate your path to break-even with re:cap.

Discover insights

Enhance your financial management with re:cap. Take control of your cash flow and benchmark yourself against the competition.

Raise better

Boost your key metrics by postponing your equity round – protect your cap table and secure funding in a more favorable market.

Secure funding tailored to your needs

Calculate funding terms

Why should you extend your runway with re:cap?

Depending on your situation, re:cap works as a substitute or addition to other financing options – with advantages in both cases.
Direct costs
Indirect costs
Time to money
Amount
Non-dilutive
Restrictions
Reporting requirements
Venture Debt
8% – 15% p.a.
May be divided in cash and Payment-in-Kind (PIK) interest rates
Warrants and equity
kicker
Counting in legal fees, closing fee, maturity fee
3+ months
€1m – €50m
Often divided into tranches, where each tranche is tied to the achievement of milestones
Due to equity warrants or equity kicker
Financial covenants & securities
For example pledges on receivables, patents, intellectual property and/or bank accounts
Monthly reporting
Depending on the respective exposure, providers may also ask for board seats
2% – 15% on each financing
None
48 hours
Up to 60% of ARR
None
Automated through platform
Calculate funding terms
Venture Capital
>€100k – €900k
Legal, notary and potentially advisor fees
5% – 25% loss of shares
per equity round
Legal, notary and potentially advisor fees
3+ months
€1m – €50m+
Personal guarantees & commitments
Monthly reporting, board seats
More options

Reduce dependency on venture capital and venture debt.

Less dilution

Preserve your ownership stake and stay in control of your company.

Less costs

Save time and money spent on due diligence and reporting.

More control

Your business, your decisions. With re:cap, you remain in charge.

Hear it from other companies

FAQs

Didn’t find an answer? Talk to us.

Why should I use re:cap if I don't have runway issues at the moment or if I just raised funding?

A runway extension gives you control over when to raise funds. It can buy time to secure a higher valuation or wait for better market conditions. If you're close to becoming cash flow positive, it helps you get there without raising more equity.

The ideal time to act is right after a fundraise when your runway is sufficient, as this affects your financing terms. Many of our clients use re:cap to finance day-to-day spending, preserving their equity for long-term investments. However, if you wait too long and your runway shrinks, securing funding – even at higher costs – can become nearly impossible.

How much can I extend my runway?

re:cap’s funding can extend your runway, but the exact effect depends on various factors. On average, our funding adds 12 months to your runway. In many cases, it even enables profitability without further equity. With re:cap Insights, you can calculate your runway based on your specific situation and see how your cash flow will develop in the future.

How do I have to use re:cap in order to achieve a runway extension?

re:cap’s funding works like a revolving financing line, giving you control over how much of your funding limit you use to extend your runway.

You decide whether to increase your funding, stay cash flow neutral, or start paying back, depending on your available limit.

Take care of all things financing

Get access to re:cap and make financing decisions with confidence. Create an account or talk to our experts about your financing.

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