£8.5M venture debt facility for fast-growing B2B SaaS platform. Non-dilutive growth capital enabling international expansion while preserving equity for founders and early investors.
The Challenge
Series B SaaS company with strong ARR growth (£12M to £28M YoY) needed £8.5M for US market expansion. Founders wanted to minimize equity dilution after raising £15M Series A at £45M valuation 18 months prior. Traditional lenders declined due to negative EBITDA despite strong unit economics and 95% gross retention rate.
Our Solution
Introduced to specialist technology debt fund comfortable with high-growth SaaS metrics. Structured £8.5M venture debt facility with 4-year tenor, interest-only period aligned with projected cash flow breakeven, and warrant coverage of 12% at Series A valuation. Facility secured against IP, goodwill, and floating charge over assets. Covenants focused on ARR growth and cash burn rather than profitability.
The Result
Facility completed in 6 weeks enabling immediate US expansion without equity dilution. Company used capital to open New York office, hire US sales team, and accelerate product development. ARR reached £45M within 18 months. Company raised Series C at £180M valuation, enabling refinancing of venture debt at substantially improved terms. Founders maintained additional 8% equity versus alternative VC round.
Key Takeaways
- Specialized lender expertise in venture debt was critical to success
- Completed in 6 weeks from initial consultation to funding
- Total facility size of £8.5M structured to meet client needs
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