Insights on venture debt.

What Happened in 2018? The industry witnessed firsthand the trend of more and more companies adopting SaaS platforms as part of their overall technology strategy. Additionally, we saw infrastructure services experience massive growth, particularly for AWS. This service accounted for 55% of Amazon’s operating profit, though it only contributed 12 percent to net sales. SaaS …Read More

What Is a SaaS Go-to-Market Strategy? A go-to-market (GtM) strategy is how companies — not just SaaS businesses — plan to reach their target consumers and also establish a unique competitive marketplace advantage. Interestingly, it’s not often the companies themselves deciding how to target their ideal customers but the customers themselves who create trends and …Read More

First, What is the Digital Transformation? The digital transformation is a collective term for industries and organizations (and even non-business sectors and governments and societies themselves) across the world following the trend of changing the way they use digital technologies while also accelerating their impact. It’s a very broad term with vast implications across the …Read More

The SaaS industry saw some serious growth in 2018. While businesses have been using SaaS platforms for years, more and more have been adopting and implementing SaaS applications as key components of their business operations — so much so that cloud infrastructure platforms such as Microsoft Azure and Amazon Web Services, the cloud-based foundations of …Read More

A final loan condition we wanted to cover is the use of personal guarantees in raising capital. A personal guarantee agreement isn’t something you’ll often find in the venture debt financing sphere, but you might be asked to sign one if you pursue other forms of financing. Specifically, bank loans and other lenders may require …Read More

There are many terms and financial mechanisms involved in venture debt financing, one of which is a debt covenant. This is one of the loan conditions you may be required to accept to receive venture debt financing. At first, this might give you pause — but a debt covenant is less of a risk to …Read More

A warrant (also called an equity kicker) is a security that grants a lender the right to buy stock in a company for a fixed price until a preset expiration date. Warrants are typically provided as an incentive to investors in exchange for their investment; however, depending on the lender, they may also be a …Read More

Venture debt financing is one of the most flexible, founder-empowering forms of SaaS funding available on the market. While a number of other options are available, debt financing stands above the rest when it comes to keeping founders and owners operationally and strategically free. However, while debt financing allows borrowers to maintain complete ownership of …Read More

We Know, Debt Doesn’t Sound “Flexible” We all know what debt is: money that is lent and must be repaid with interest. But in terms of debt as a funding model for growing SaaS companies, it’s actually quite flexible for many reasons. When compared to other models that require collateral (that online software-based companies typically …Read More