Description of SaaS Capital
As the name suggests, SaaS Capital exclusively finances SaaS companies. Their Committed Credit Facilities are specifically designed to fund the growth of a SaaS business in lieu of a round of equity. The company provides Committed Credit Facilities of $2 million to $15 million to SaaS companies with $200k and up in monthly recurring revenue (MRR).They understand the nuances of your business model and can get to ‘yes’ or ‘no’ quickly. If it’s a good mutual fit, they can usually originate a term sheet in about a week. Their Committed Credit Facilities provide SaaS companies with distinct advantages: Longer commitment and repayment periods (5+ years) during which your available capital can be drawn on for 2 years and the facility can then either be renewed or the debt amortized out over an additional 3 years; More capital: SaaS Capital makes available between 4x and 7x MRR to be drawn as needed. Since the available amount is a multiple of your MRR, total borrowable funds automatically increase as your revenue grows; Lower total interest expense -- compared to a term loan, cash is borrowed only as it is needed, thereby reducing total interest expense, and; Useable money -- no balance sheet covenants so you don’t end up borrowing your own money.They also have over a decade of experience in the SaaS ecosystem to help portfolio companies succeed through: Knowledge transfer -- their portfolio company executives participate in exclusive forums and conference calls to share their experiences, challenges, and successes; Industry access -- they connect their companies with SaaS-specific advisors and later-stage investors as needed, and; Research and benchmarking data -- they publish original, data-driven research on SaaS-specific topics such as valuation, retention, growth, and marketing.
