Insights on venture debt.

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

Warrants are a useful mechanism for incentivizing lenders to invest in your business. But they come with immediate and long-term risks.

Why Loan Conditions Are Needed 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. This is because of the flexible …Read More

Debt is the flexible financing SaaS companies need to ensure operational freedom and long-term financial gain for owners. Here’s why.

The venture capital success rate is are low, and there’s a reason and research to prove it. Here’s why you should weigh your options.

Venture Capital Can Pose a Productivity Challenge While venture capital funding (along with other models) provides resources that allow you to make improvements or changes, it’s not guaranteed that your SaaS business will become more productive as a result. In fact, raising venture capital funding can often have the reverse effect: when those funds come …Read More

SaaS business owners are often drawn to venture capital investors without considering other funding options. There are a number of reasons for this. The sheer popularity of venture capital, the perception that VC funding will make a company successful, the higher appetite for risk, and so on. In the end, SaaS owners are trading important …Read More

Do the Benefits Outweigh the Risk of Debt Financing? While there is certainly the risk of debt financing, there are also many benefits. Staying in control of your business’ day-to-day operations as well as its long-term goals. Regaining control of your business if equity is already in employees’ or investors’ hands. Extending your cash runway …Read More

Is Debt Financing Right for Your Business? We recently explored four strategic reasons why companies take on debt as opposed to other forms of financing, like equity financing or bank loans, debt financing provides a financial foundation for SaaS companies to achieve certain goals. These were situational and relative to where SaaS companies stood in …Read More