A SaaS Lending Story:
Located in Arden Hills, Minnesota, Etail Solutions has been connecting merchants and brands to a single integrated platform since 2010. Etail provides a full suite of services to sophisticated online sellers selling on Amazon, eBay, Walmart, and other marketplaces. The company helps retailers to integrate and automate their sales and supply chains. It’s the platform that fuels the growth of multiple Amazon Top 10 sellers.
Looking to grow its team and marketing, Etail Solutions began exploring options for non-dilutive debt financing that would flexibly meet its needs and support the growth of the company.
Etail and River SaaS Capital began working together to create a funding solution that supported its goals and current revenue.
Etail was able to successfully build out its account management and sales teams while also expanding its marketing capabilities.
In late 2017, Etail Solutions began exploring its options for growth capital. The company’s primary interest was in obtaining funding for talent acquisition — specifically to help build out senior-level account management and sales teams. Additionally, growth capital was needed to fund strategic marketing initiatives such as trade shows — a great way for SaaS companies to capture top-of-funnel leads and establish new strategic partnerships.
One critical component of the search criteria was a funding solution that wouldn’t result in equity dilution and would also be flexible enough to support future funding rounds as the company scaled up for growth. Etail found this solution in the non-dilutive venture debt financing offered by River SaaS Capital.
“We appreciate their flexible structure and ability to invest with us over time. We look forward to a very successful relationship with the River SaaS team.”
Throughout the application and due diligence processes, River SaaS worked closely with Etail’s leadership team to coach the organization on SaaS growth strategy, building a sticky recurring revenue stream, and managing contracts as well as leases. Assistance was also provided to Etail in the development of new growth strategies as well as the identification of savings opportunities for its hardware.
River SaaS also helped establish new relationships for Etail, providing introductions to other industry SaaS companies and potential service providers that could help them extend the capability of their platform.
River SaaS provided non-dilutive venture debt funding to Etail in Q2 of 2018 to help the company accelerate its hiring and marketing initiatives. Supporting Etail’s need for flexibility, additional venture debt funding was provided in the form of tranches — a portion of a loan that allows borrowers to pay less interest over the life of a loan — to help Etail maintain progress toward achieving its goals.
“We’re excited to have Etail join our portfolio,” said Wendy Jarchow, Chief Investment Officer of River SaaS Capital. “Michael and his team have created an impressive product and organization, and we look forward to helping them accelerate their growth.”
“We’re thrilled to establish a partnership with River SaaS Capital,” said Michael Anderson, CEO at Etail Solutions. “We appreciate their flexible structure and ability to invest with us over time. We look forward to a very successful relationship with the River SaaS team.”
Looking for Growth Capital?
If your company is considering its growth capital options and can relate to the scenario in this case study, we’d enjoy an opportunity to speak with you and learn more about your SaaS platform. Contact us today to learn more about our funding solutions.