We Know SaaS

“
As our name suggests, SaaS Capital exclusively finances SaaS companies.

By focusing just on SaaS businesses, we have been able to optimize both

We were fortunate to have a number of
the structure of our Committed Credit Facilities and our underwriting financing alternatives, but in the end,
guidelines. the availability of the SaaS Capital line,
coupled with the ability to draw down
This focused approach generates faster decision making and an cash only when we need it, made SaaS
Capital the obvious choice.
optimized structure which delivers more capital, over longer periods of Liz Pearce
time, and with flexible draw-down and repayment features. CEO, Liquid Planner

As we evaluated investment options for

Our borrowers typically use their SaaS Capital Committed Credit fueling our growth plans, SaaS Capital
Facilities in lieu of equity to finance investments in sales, marketing, and offered the perfect solution that allowed
us to scale the financing in alignment
new product development.
with our revenue objectives while not
diluting the equity in the company.
The team at SaaS Capital has been investing in this business model since
Mat Atkinson

”
it was called ‘ASP’, so you will be dealing with experts in SaaS from the Founder & CEO, ProofHQ

moment you first speak with us.

Amount

Bank Loans
• Low interest rate & fees
• Low availability
• Restrictive covenants
Venture Capital
• Appropriate to finance
start-up and product
SaaS Capital adoption risk
• Most availability
• Highest cost of capital
• Line of Credit that
Venture Debt increases with MRR
• Dilutes ownership
• In some cases, can • Possible loss of control
• Multi-year draw down
extend runway
with capital drawn as
• Term structure is not a needed (no excess
good fit for SaaS borrowing)
• Amortization restricts • Long duration,
growth 5 year minimum

• Good for short-term • Creates ‘over-borrowing’

cash-flow ‘smoothing’ up-front
Cost

SAAS CAPITAL
Todd Gardner, Founder and Managing Director
513.368.4814 tgardner@saas-capital.com
Rob Belcher, Managing Director
303.870.9529 rbelcher@saas-capital.com ALTERNATIVE GROWTH FINANCING FOR SAAS
What can SaaS Capital Do For You?
Because of our higher availability and long-term structure, most companies SaaS Capital lends
use our Committed Credit Facilities in lieu of a Series A, B, or C of equity.
between $2M and $15M
Benefits of our unique, SaaS-focused, approach:
 SaaS Capital is best able to assist
companies with the following attributes:
• Higher advance rates — Capital availability is based on a multiple of
• Sell a SaaS-based solution
your monthly recurring revenue (MRR) – typically 5x to 7x MRR • $250,000, or above, in MRR
• History of renewals greater than 85%
• Capital availability that grows with your business — The amount of
• Headquarters in U.S., Canada, or the
capital that you can draw increases as your revenue grows United Kingdom
• Revenue growth above 15% per year
• Long-term source of capital — The capital is typically drawn down over
2 years under the committed line of credit, and then either renewed, or Your business does NOT need to be:
repaid over the following 3 to 4 years
• Venture Backed
• Efficient use of capital — Capital is drawn down only as your • Profitable
• Billing your customers monthly
business needs it, thereby reducing your interest expense

• Cost is simple and transparent — interest rate of 12% to 14%, a 1.0% to

2.0% commitment fee, and at-the-money warrants

• No balance sheet covenants or cash reserve requirements

“ In the end, they brought more than money to the table —they delivered a wealth of industry experience

”
and knowledge. This kind of partnership is incredibly valuable to growth businesses like MBA Focus.
Jack Gainer CEO, MBA Focus

A Committed Credit Facility in Practice

A SaaS Capital portfolio company borrowed $2M over two years and financed the growth of their enterprise value by $15 million on just $300k in
interest expense. Many other SaaS Capital borrowers have used their Committed Credit Facilities to cost effectively finance a 3x, a 4x, and in one recent
case, a $380 million increase in enterprise value prior to a sale or follow-on financing.

MRR & EBITDA Line Availability & Borrowings

600
Thousands

2,500
Thousands

$24.5
million
500
in value
2,000
400

300 1,500

$9.6
200 million
in value
1,000

100

– 500
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

(100)
-
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
(200)
Borrowed Line Availability
Monthly Revenue Monthly EBITDA

SAAS CAPITAL
Todd Gardner, Founder and Managing Director
513.368.4814 tgardner@saas-capital.com
Rob Belcher, Managing Director
303.870.9529 rbelcher@saas-capital.com ALTERNATIVE GROWTH FINANCING FOR SAAS