3 ms·

Any companies you recommend for this? Thanks!

by throw03172019 8y ago

Alex3917 8y ago
For early stage, I think Earnest Capital does this but you'd have to ask Tyler. For later stage, I would look at Timia Capital. Some of the payment processors that SaaS companies use may also have their own solutions that just look at your MRR and let you borrow an appropriate amount against that automatically.
- tylertringas 8y ago
  We are in the same ballpark but don't do revenue-based financing (ie getting repaid via taking a % of revenue). We are typically investing earlier in startups where it doesn't make sense to take money off the topline yet. (More on our model: https://earnestcapital.com/shared-earnings-agreement/ https://earnestcapital.com/shared-earnings-agreement/). Timia and Lighter Capital offer revenue-based debt for companies that are I believe at least at $25k-50k MRR. Clearbanc will offer RBF specifically for your paid marketing (ie FB ads) budget but doesn't fund other parts of your business.
  - floatrock 8y ago
    Revenue-based or shared earning financing at first glance looks a lot like a bank loan, almost the original revenue-based financiers... the loan officer isn't going to approve the small business loan if it doesn't look like you have the revenue to pay it off, and 'return cap' is roughly kinda another way of modeling interest rate returns. Can you talk more about revenue financing vs. bank loans? eg I assume bank loans are lower risk and often want physical assets backing the loan instead of paper equity. I'm curious how this model fits into the broader world of alternatives-to-VC-financing.
- troydavis 8y ago
  I don't have any experience with either of these, but for later stage, these are well known: https://www.saas-capital.com/ https://www.saas-capital.com/ https://www.lightercapital.com/ https://www.lightercapital.com/ Both do variations on https://www.saas-capital.com/blog/funding-properties-mrr-credit-facility-for-saas/ https://www.saas-capital.com/blog/funding-properties-mrr-cre....
edoceo 8y ago
LighterCapital is one too

Any companies you recommend for this? Thanks!

For early stage, I think Earnest Capital does this but you'd have to ask Tyler. For later stage, I would look at Timia Capital. Some of the payment processors that SaaS companies use may also have their own solutions that just look at your MRR and let you borrow an appropriate amount against that automatically.

tylertringas 8y ago
We are in the same ballpark but don't do revenue-based financing (ie getting repaid via taking a % of revenue). We are typically investing earlier in startups where it doesn't make sense to take money off the topline yet. (More on our model: https://earnestcapital.com/shared-earnings-agreement/ https://earnestcapital.com/shared-earnings-agreement/). Timia and Lighter Capital offer revenue-based debt for companies that are I believe at least at $25k-50k MRR. Clearbanc will offer RBF specifically for your paid marketing (ie FB ads) budget but doesn't fund other parts of your business.
- floatrock 8y ago
  Revenue-based or shared earning financing at first glance looks a lot like a bank loan, almost the original revenue-based financiers... the loan officer isn't going to approve the small business loan if it doesn't look like you have the revenue to pay it off, and 'return cap' is roughly kinda another way of modeling interest rate returns. Can you talk more about revenue financing vs. bank loans? eg I assume bank loans are lower risk and often want physical assets backing the loan instead of paper equity. I'm curious how this model fits into the broader world of alternatives-to-VC-financing.
troydavis 8y ago
I don't have any experience with either of these, but for later stage, these are well known: https://www.saas-capital.com/ https://www.saas-capital.com/ https://www.lightercapital.com/ https://www.lightercapital.com/ Both do variations on https://www.saas-capital.com/blog/funding-properties-mrr-credit-facility-for-saas/ https://www.saas-capital.com/blog/funding-properties-mrr-cre....

edoceo 8y ago

LighterCapital is one too