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SaaS Capital Closes $75MM Investment Fund

September 17, 2018, 08:00 AM
Filed Under: Software
Related: Funds, SaaS, SaaS Capital

SaaS Capital, a provider of Committed Credit Facilities to Software-as-a-Service (SaaS) companies, announced that it has closed its third fund with $75 million in limited partner commitments.

"We are grateful for the support from our existing and new investors who made this fundraising process very straightforward," said Todd Gardner, Founder and Managing Director of SaaS Capital. "Their support validates our leadership position as pioneers in the SaaS lending space going back to 2007. In our third fund, we will remain committed to serving the $3 to $30 million SaaS company, which is why we limited the fund to $75 million despite being substantially oversubscribed."

More than 50 SaaS companies all over the US, Canada, and the UK have used SaaS Capital to fund their growth while allowing founders and existing equity holders to retain control of their companies and avoid significant dilution to their ownership. In just the last 18 months, 10 SaaS Capital portfolio companies have realized successful exits and funding events, including:

  • FreeAgent's $74 million acquisition by Royal Bank of Scotland
  • Uberflip's $32 million Series A/Recapitalization
  • CoverMyMeds' $1.3 billion acquisition by McKesson Corporation
  • Reeher's $43 million acquisition by Blackbaud
  • ClearCompany's $60 million Series A/Recapitalization

"When a company has less than $10 million of annual revenue, a Series B or C round can be very dilutive," said Rob Belcher, Managing Director. "As is evidenced by the recent fundraisings above, our Committed Credit Facilities enable companies to eliminate several rounds of equity and skip straight to an exit or growth equity round. Capital-efficient companies have used SaaS Capital to create over $550 million of equity value with minimal dilution to existing shareholders and no loss of control."

SaaS Capital began providing alternative growth capital to SaaS companies in 2007 and closed its first fund in May 2012 with $22.5 million in LP commitments. Building on that success, the company closed its second fund in January 2015 with $58 million in LP commitments. To date, 51 SaaS companies across the US, Canada, and UK have used SaaS Capital to fund their business.

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