The most discussed topic in any saas gathering is Funding. While you would like to think that it should be the product, it is not. “Have you raised?” “Are you raising?” “Pre seen? Series A? Angel? Syndicate?” – you get the drift.
As you get your growth momentum, there are many reasons why you should consider debt. if you are growing 20% every month and raise debt financing to extend your runway you are likely to create a lot of enterprise value which can then be en-cashed with lower equity parting in the following rounds of Venture Capital raise.
It seems you need to start by asking yourself these two questions :
1. How much money do you need relative to your revenue?
2. Is your company venture-backed?
If your need is anything around 3x your MRR then Banks seem to be the best bet. However this is not for your initial days. The best time to explore is when you are potentially turning in between $100k to $250K in MRR.
This article in Saastr by Todd Gardner, founder of SAAS Capital is educative and provides for some insights and thereby, options as you consider adding capital to your rocket ship.
Where I learnt it #217
How SaaS Companies Can Maximize Their Value with Debt https://www.saastr.com/saas-companies-can-maximize-value-debt/