The fund is set to be used to assist growing SaaS companies by providing them with access to revenue-based finance and term loans.
SAN ANTONIO, October 12, 2021 (Newswire) - Element SaaS Finance, a leading provider of growth funding offering flexible and capital-efficient venture debt and revenue-based finance solutions, has announced the raise of its second fund, giving it access to over $40 million. The investment comes from both new and original investors from the firm's initial $14.5 million fundraising effort.
Element SaaS Finance provides alternative growth finance to SaaS companies with recurring revenue to help bridge the funding gap. The team prides itself on its partnership approach and flexible funding up to $10 million with no board seats, personal guarantees, or equity warrants.
Element SaaS Finance is led by seasoned SaaS operators and General Partners: Lew Moorman, former President of Rackspace; Ed Byrne, Entrepreneur; and John Gallagher, CEO and Partner. The management team has a proven track record of guiding founders, such as Athletic Greens, Mural, and Chargify, through the challenges they faced when they need flexible finance options to grow without dilution.
Element SaaS Finance plans to use the fund to help growing SaaS companies build a robust capital stack by giving access to revenue-based finance and term loans.
"The closure of this funding round marks a significant milestone for Element SaaS Finance," said Gallagher. "These funds will allow us to provide finance solutions to more high-quality companies that need a capital partner for the long term and can benefit from debt finance instead of dilutive equity raises. Many of the current finance offerings we see are misaligned with the needs of their customers. We believe in using the right type of capital for the right use and are committed to providing SaaS founders a simple alternative funding option to address historical limitations."
For more information, please visit www.elementsaasfinance.com.
About Element SaaS Finance
Let's face it. Not all debt is created equal. We believe there's a different way to grow, and finance should be straightforward and tailored to the needs of a fast-growing business. Founded in 2019, Element SaaS Finance is a leading provider of growth funding, offering flexible capital-efficient, finance solutions. The team has a proven track record of guiding founders, such as Athletic Greens, Mural, and Chargify, through the challenges they faced when they needed funding to grow without dilution.
Our alternative venture-debt finance provides a better way to build a capital stack, turning MRR into ARR to bridge the SaaS funding gap through fixed-rate term and revenue-based finance loans, as well as venture-debt term loan solutions. Our straightforward finance options are customized to the needs of the business with no hidden terms and conditions, board seats, personal guarantees, or equity. We believe in relationships and the people behind the products. We take a personal, partnership-led approach to learn your business and support your growth.