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When this B2B Enterprise SaaS FinTech first partnered with Pershing Ventures in 2022, it wasn't looking for a one-time financing solution. It needed a long-term capital partner capable of funding both key initiatives as part of its strategic growth plan and (b) high value opportunities as they emerged.
The first financing transaction enabled the company to hire key revenue-generating talent for a critical project. As the business expanded, new opportunities followed, and so did our capital.
Over the next five years, that initial transaction evolved into a long-term financing partnership, with more than US$6 million provided across seven financing transactions. The capital supported initiatives including:
- Hiring revenue-generating talent
- Product development
- Customer acquisition
- Channel and business development
- Sales and marketing initiatives
- Industry events and digital marketing
- Other strategic growth initiatives
The Results
The business grew by more than 4x, surpassing US$6.5 million in Annual Recurring Revenue (ARR) and positioning the company to exceed US$10 million in annual revenue in 2026.
At the same time, operational performance strengthened significantly, with substantial improvements in net profit margins that brought the business to sustained profitability.
The Outcome
Knowing that financing would be available as the business plan required it and tactically when meaningful revenue opportunities arose enabled the company to be confident in delivering to its Board and customers as well as capturing valuable episodic opportunities.
Whether expanding an existing customer relationship, entering a new market, hiring additional talent, or accelerating commercial initiatives, management was able to focus on execution instead of fundraising.
Rather than slowing growth while searching for capital, or giving up ownership to obtain it, the company continued building its business with confidence, supported by a financing solution designed to grow alongside it.
The improvement in financial metrics will result in a materially enhanced equity valuation for the company. Since it didn’t have to raise equity and dilute shareholders to fund its growth initiatives, the higher equity valuation for the company will accrete fully to the founders and investors!
A Long-Term Partnership
Five years after the initial transaction, the company is significantly larger, stronger, and more profitable than when the relationship began.
Throughout that journey, it achieved its growth objectives without raising equity, diluting founders or existing shareholders, or sacrificing control of the business.
Could Your Business Be Next?
Every growth journey is different, but the right financing partner can make all the difference. If your business is generating recurring or predictable revenue and you're looking to accelerate growth without giving up equity, we'd love to learn more.
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