How to Qualify for Revenue-Based Financing
We pass on more deals than we close. Here is what we are actually looking for. We are not the right fit for every software business. The criteria we use are specific, and they exist because revenue-based financing only works when the fundamentals support it. A deal that looks good on the surface but fails […]
Software Funding in Europe: State of the Market
The European software funding market has shifted. Here is what that means. Â Â Â Â The conditions that defined software funding from 2019 to 2022 no longer apply. Deal volume has fallen, underwriting assumptions have changed, and the gap between early-stage access to capital and growth-stage access to capital has widened. This is not […]
Revenue-Based Financing vs Venture Capital
Two ways to fund growth. They are not interchangeable. Venture capital and revenue-based financing are both legitimate funding tools. They are built for different situations, different software entrepreneurs, and different definitions of success. The right answer depends on what you are actually building and where you want to end up. This page is not an […]
Non-Dilutive Funding for SaaS Companies
You built the business. You should still own it. At some point, every growth-stage software entrepreneur faces the same question: how do I fund the next phase without giving the company away piece by piece? For most of the last decade, the answer was assumed to be venture capital. Raise a round, dilute your ownership, […]
Revenue-Based Financing Explained
Grow your software business. Without giving up a piece of it. Revenue-based financing is a funding model built around one simple idea: your repayments move with your revenue. When your business has a strong month, you repay more. When things slow down, repayments shrink accordingly. There is no fixed interest rate running on its own […]
The emergence of an alternative debt market for tech in Europe
Key Points: Digitization is progressing rapidly The digitization of the European economies is progressing rapidly. Software is at the core of digitization and thus a key factor for our present and future economies. The merger between software development and distribution with cloud computing a bit more than 10 years ago led to the formation of […]
How revenue-based finance creates value for founders
Revenue-based finance is a quantum leap forward in the way the growth of digital businesses with recurring revenues is funded. The Round2 revenue-based finance solution is not only a simple, flexible and transparent form of growth funding, it also creates exceptional value for Founders and shareholders without diluting ownership. R2 Value for Founders PDF
Revenue-Based Financing and the funding ecosystem
Revenue-based finance has become an important part of the funding ecosystem. In the US and Canada there are more than 25 revenue-based finance funds, which have successfully funded hundreds of fast growing companies. Especially suitable for revenue-based funding are SaaS firms as the funding can be built into the stream of recurring revenues. More and […]
Are you a SaaS founder looking for growth capital?
Jan Hillered Founders of Software as a Service (SaaS) companies use various sources of capital through the different stages of the companies’ development. Based on conversations with hundreds of SaaS businesses over the last couple of years, this article provides an overview of how founders of SaaS companies evaluate the alternatives available, with particular focus […]