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Let’s face it, not all debt is created equal. We believe there’s a different way to grow and finance should be straightforward and tailored to the needs of the business.
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We are committed to helping SaaS founders build their capital stack while limiting their cost of capital equity.
Venture capital is a common element of the capital stack for early-stage businesses that need large amounts of money to get going and plans on building a complex product or is targeting a broad customer base. However, equity financing involves selling a portion of a company's equity in return for capital, resulting in dilution and loss of control of different elements and directions.
Strategic investors will provide different types of equity and debt solutions to businesses that correlate to their own business and see an overlap in services, customers, or products. Strategic investors sometimes ask for a first right of refusal if the company owners try and sell the business.
Private equity investors buy partial or complete ownership stakes in mature businesses, but where there is an opportunity to expand the business, make it more efficient or a strategy that the current owners do not want to or cannot take. These investors put in their own management teams and board directors and often provide advisory support and consultancy.
Seed capital is provided by private investors – usually in exchange for an equity stake in the company. The type of investor will include founder personal investment, friends and family, angels, or investment funds set up specifically for an early-stage venture.
Investors and business communities set up accelerators to help early-stage businesses access both services, a network of advisors, and early-stage investors. Some accelerators have specific funds that will invest in high potential participants.
Venture debt is a loan product offered mostly by non-bank lenders. These types of loans are for growing companies where there is more risk than a traditional bank loan would work. They can involve a higher interest rate, different fees, and maybe equity warrants to allow the lender to benefit from the upside in highly successful companies.
In recent years more options around Growth Finance have become available. Revenue-based finance provides an option for SaaS founders where the loan is repaid with a percentage of monthly revenue, with a set cost. SaaS companies can leverage recurring revenue venture debt to grow their business without warrants, prepayment penalties, persona guarantees, or equity dilution.
A business grant is money awarded to businesses undertaking innovation or have the prospect of growth, resulting in employment creation. Government agencies usually issue them, and unlike loans, grants don't have to be paid off.
Commercial banks give loans to businesses that have advanced to a mature stage in revenue, customers, product, and cash flow. Banks can support these more stable businesses due to the low risk involved in the loans and the high confidence that the loan will be paid back.
Our fastest funding was only four days, but our average time to funding is six weeks. So, we will work with your schedule as best we can.
We lend up to $10m.
No, we help drive growth, not dilution. We believe warrants are not in the best interest of founders and have never done a loan with a warrant.
We value our founder’s privacy and do not share data about our clients without consent.
We lend based on recurring revenue, not profit. Although burning cash to grow is part of high growth strategies, we like to see this done in a managed way that fits into the business's objectives and growth plan. We are fine with pre-profitability if a company has low debt, a plan, low churn, and enough revenue to secure the loan amount.
We have no prepayment penalties. However, we do require a notice period after a pre-agreed minimum term length.
