IOCS is a fast growing SaaS company providing an online platform for complex retail transactions like credit, leasing, and insurance. The business was founded in 2009 by an experienced team of industry experts and it is the world’s first multi-tenant end-to-end SaaS for e-contract processing.
In 2014 IOCS raised £1.5M from Notion Capital, a SaaS only VC investor. By 2015 the company had exceptional SaaS metrics. The management team was looking to extend cash runway before a new round of equity to build up valuation. Because of their focus on revenue growth the strategy was to invest in their platform.
Due to IOCS’s driven entrepreneurial team, fast growth of SaaS revenues, market leader in a new industry and solid equity investor backing the company, they managed to raise a £2M growth loan in line with their business growth (£0.5M upfront / £1.5M within 12 months subject to achieving growth targets). The investment was provided by BOOST&Co.
The funding allowed IOCS to accelerate growth to trigger a higher equity valuation at next large equity round, without suffering heavy dilution of raising more equity. The business could also invest in full R&D team and deploy sales organisation, delaying fundraising by 12 months to increase valuation by 2x.