‘Equity round alternative’: B2B software startup lender SaaS Capital raises $128M for 4th fund

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Randall Lucas.

news: SaaS Capital, a lender that provides software-as-a-service startups with alternative financing options to traditional venture capital, raised $128 million for its fourth fund, up from its third fund of $75 million raised in 2018.

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Ideal: Founded in 2007, SaaS Capital specializes in providing lines of credit that do not dilute a company’s cap table, and allow the firm to avoid discussions about valuation or control provisions. Its loan offering is based on a company’s annual recurring revenue with a specified interest rate. “We provide an option that allows companies to grow and thrive, and raise equity when they want to,” said Randall Lucas, Managing Director.

People: Lucas joined SaaS Capital after stints with Seattle firms Voyager Capital and Lighter Capital, another “alternative VC” firm. He helped start Lighter Capital in 2012 Rob Belcher, who became Managing Director at SaaS in 2015. Other Managing Directors include stephanie fortner And Steve Jaffy, both of which are located in Ohio. SaaS was founded by todd gardner,


more information: SaaS Capital expects to make 5 to 10 investments per year, writing off debt facilities between $2 and $15 million. The firm has financed over 80 companies to date in industries including healthcare, logistics, collaboration/productivity, and more.

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