On September 14th, 2021, the Hum Capital team convened a panel of experts to learn about the ins and outs of non-dilutive and debt financing for recurring revenue businesses. Michael Slawson, Head of Growth, moderated the panel, which included the following panelists:
- Nikunj Mehta, Founder and CEO of Falkonry
- Ed Wu, Managing Director at Bastion Management
- Maytal Shainberg, Senior Vice President at East West Bank
Growing Your Subscription Business With Less Dilution Webinar Recap
This webinar builds on an article we recently wrote about 6 different non-dilutive funding models for SaaS companies. In the webinar, we dove deeper into the following topics:
- The accelerating trend of recurring revenue businesses turning to debt and non-dilutive financing as lenders realize these businesses deserve credit.
- Making sure your balance sheet has the right type of capital that matches the risk profile of your spend plan.
- Debt being less of a commodity than you think, given the unique credit boxes from which each bank and non-bank fund deploys capital.
- Diligence is a two-way street, and you need to make sure you find a lender who understands your business and who will stay in business.
- A term sheet should be collaborative. If the negotiation feels contentious, then that lender is likely not a good fit.
- A strong growth story goes a long way in helping you access debt to grow.
- The best time to raise debt (hint: right after you raise equity).
- Alternative financing is always the cheaper route if you truly believe your equity is worth something. As a founder you need to be realistic on your personal motivations and what’s best for your company. It’s okay if you are not building a unicorn.
Stay tuned for more content as we help founders navigate the complexities of raising capital. We look forward to seeing you at our next digital event!
As always, if you are interested in exploring your financing options, the Hum Deal Team is always happy to talk with you. Email us anytime at email@example.com.