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Examining Early-Stage Funding Options: Equity, Revenue-Based Financing, Debt

Maybe I need to take more content sabbaticals because I’ve been on a tear the last 30 days, cranking about 15,000 words of content across 15 articles. This is a bit of an estimate as I have not gone back and word counted, but I’m generally putting out 800-1200 word posts.

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What the Changing Seed Funding Market Means for SaaS Founders
What the Changing Seed Funding Market Means for SaaS Founders

Here’s the meta-narrative surrounding venture capital -- Hockey sticks in venture capital fundraising → larger venture capital financing rounds with concentration at the late stage (post-Series C) → larger required exits (IPO bets). All of which reinforce hypergrowth to massive scale as the end all be all for “successful” software companies.

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How We Think About Markets as a SaaS Lender
How We Think About Markets as a SaaS Lender

Venture capital is all about multi-billion dollar total addressable markets (TAMs) as the entry fee. If you’re not able to make a convincing case that you’re pursuing a massive TAM and that your team can eventually gain significant market share to have a huge exit, you’re charging up a very steep hill when approaching VCs.

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How to Determine the Quality of Your SaaS Revenue
How to Determine the Quality of Your SaaS Revenue (and a Tool to Get You…

“Quality of earnings” is a standard investment analysis exercise, both for publicly-traded companies and M&A transactions involving profitable target companies.Given that we invest in private SaaS companies that generally do not have much in the way of a profit history, we don’t pay much attention to quality of earnings. That said, we do highly value…

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