SaaS Capital

Traditional lenders view emerging SaaS companies under an underwriting lens that focuses on hard assets and profits. SaaS Capital, in contrast, focuses on the stability of a company’s revenue stream and its capacity to generate positive cash flow when necessary. SaaS Capital's latest fund was launched in partnership with DH Capital, a leading boutique investment banking firm with deep industry expertise in internet infrastructure, telecommunications, and SaaS. The team at SaaS Capital is a collection of SaaS finance, marketing and technology experts that understand the unique characteristics and needs of the SaaS business model. As our name suggests, we exclusively finance SaaS companies. Our Committed Credit Facilities are specifically designed to fund the growth of a SaaS business in lieu of a round of equity. We provide Committed Credit Facilities of $2 million to $15 million to SaaS companies with $200k and up in monthly recurring revenue (MRR). Faster Decision Making We understand the nuances of your business model and can get to ‘yes’ or ‘no’ quickly. If it’s a good mutual fit, we can usually originate a term sheet in about a week. A Smarter Structure Our Committed Credit Facilities provide SaaS companies with distinct advantages. Longer commitment and repayment periods (5+ years).Your available capital can be drawn on for 2 years. The facility can then either be renewed or the debt amortized out over an additional 3 years. More capital. We make 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 structure, cash is borrowed only as it is needed, thereby reducing total interest expense. Useable money. No balance sheet covenants so you don’t end up borrowing your own money. Expertise in SaaS We have over a decade of experience in the SaaS ecosystem to help portfolio companies succeed. Knowledge transfer. Our portfolio company executives participate in exclusive forums and conference calls to share their experiences, challenges, and successes. Industry access. We connect our companies with SaaS-specific advisors and later-stage investors as needed. Research and benchmarking data. We publish original, data-driven research on SaaS-specific topics such as valuation, retention, growth, and marketing. Impact of Leverage The SaaS business model is well suited to enhance shareholder returns through the use of debt because even a modest increase in annual recurring revenue generates equity value that far outweighs the cost of capital.