SaaS Capital by
We’re expert SaaS investors
Contact us: +44 207 651 4934
Not only does the BOOST&Co team have prior experience of managing software companies, we have lent successfully to lots of them. We understand SaaS and believe that we have the perfect funding solution to back your growth journey, because the capital we provide helps preserve your equity and prevent dilution. We lend £1 million to £10 million to businesses with monthly recurring revenues in excess of £100,000, regardless of whether you are privately owned or backed by institutional investors, to support your growth. Knowing and understanding the SaaS sector means that we are confident enough in the business model to not require control of your company – we take no board seats or voting rights. It also means that we can take our decisions quickly and keep management distraction to a minimum. If your business fits what we’re looking for, we can issue a term-sheet within just a week.
SaaS FUNDING AT WORK
Equity dilution is most painful when companies are building their equity value rapidly. This is particularly common for fast-growing SaaS companies whose valuation is calculated as a multiple of revenue. As such, our financing solutions are structured to support growth while saving you from equity dilution. That means you maintain control, as we take no board seat or voting rights. SaaS businesses use us as a bridge to break even, to delay their next round of equity and hit the milestones that will help trigger higher valuations, or to never have to raise further equity. So your business grows, and stays yours.
What’s more, BOOST&Co creates SaaS financing facilities that will grow with your business. Some of the companies we’ve invested in have started with loans of as little as £1,000,000, then raised more capital from us in line with annual recurring revenue growth; and only as and when the business needed more funding. This lowers the cost of capital, because you ‘pay as you grow’ – only paying for funding as you need it.
SaaS METRICS WE LOOK AT
We invest in SaaS companies with a proven business model and a monthly recurring revenue in excess of £100,000. We like SaaS companies with a quick growth rate. The earlier stage your business, the quicker we’re expecting you to grow. You can be pre-profit, break-even, or profitable – what matters to us is that there is a clear path for the business to service the debt. In pre-profit businesses, that can be a clear path to break-even or to an equity raise. In all cases, we like to back businesses when they have a cash runway of at least 18 months – allowing for optimal growth opportunities – before another round of investment is required. We also look at the standard SaaS metrics, ARR growth, churn, gross margins, CAC, and CLTV.