How one founder leveraged financial obligation to drive early development and prevent dilution

How one founder leveraged financial obligation to drive early development and prevent dilution

Could SaaS securitization be a future design of financial obligation for start-ups? The word has negative connotations, however the reality is that simply like equity capital, debt is an essential tool in the corporate finance tool kit. Judicious use of debt with the best terms and conditions can cut the cost of capital for a start-up substantially, conserving creators and early-stage investors from severe dilution as a company scales. Founders, particularly those who run business with recurring earnings, are significantly hearing the debt pitch from bankers and peers, leading many to think about debt choices much earlier than has traditionally been the norm. Let’s stroll through how a creator sees debt today and discuss what the market looks like for financial obligation options….