Employment & Payment SaaS Company Closes $8.4M in 6 Months with Capchase

How one SaaS vendor increased valuation by 10x and closed $8.4M in new deals

Our customer is a SaaS vendor offering an all-in-one platform that provides solutions for freelancers, remote workers, and businesses aiming to manage international teams. Their services include global payment tools, employment solutions, contract & compliance tools, and work permits. 

Founded in 2020, this company has revolutionized work payments and local employment experiences for remote workers and employers with payment tools that are purpose-built for the future of remote work. 

With 80,000 users in 85+ countries, the company collaborates with local legal and accounting teams across the globe to ensure full legal compliance. Additionally, they offer global mobility assistance, which includes visa and work permit application support for professionals seeking work in different countries. 

The challenge they faced 

With many customers paying in installments for their services, it was difficult for the company to accrue the capital needed to power growth. On top of that, managing the billing and collections across their large customer base, with varying payment terms was becoming a bit of a nightmare.

In 2021, the SaaS vendor was at risk of having to sell 15% of their company in order to accrue the capital necessary to power growth. Instead of pursuing equity financing, they turned to Capchase, for non-dilutive funding first and then shifted to contract financing as they scaled their business.   

4 benefits of delaying an equity raise

While many companies jump right into equity fundraising, there are many valid reasons to delay an equity raise instead:

1. Develop a strong foundation
   Delaying an equity raise and not diluting ownership is a great way to ensure that the founder’s vision remains cohesive and clear. 

2. Focus on development and market fit
   Using alternatives to equity funding can give startups more time to do market fit research, customer base development, and product development.

3. Grow at a manageable pace
   Investor expectations can lead to scaling demands that outpace product performance, availability, and support capabilities, which can be disastrous. 

4. Prepare for negotiations
   Companies that find the heart of their customer base, offer high value, and power growth on their own terms are in an advantageous position when it comes to negotiations with venture capital. 

For this SaaS vendor, delaying an equity raise allowed them to fund growth with contract financing, retain more ownership of their company, and provide their global customer base with a streamlined payment experience. 

Closing $8.4M in 6 months with Capchase

Capchase Pay allows the SaaS vendor to offer flexible payment terms to their customers with built-in contract financing. Integrating seamlessly into the checkout workflow, Capchase allows their customers to choose a payment schedule that works for them, while paying the SaaS vendor the full ACV upfront. 

Since 2021, the SaaS vendor has used Capchase to secure non-dilutive funding in various forms. In the last six months alone, they have used Capchase Pay to close over 150 deals totaling more than $8.4M in contract value, and increased company value by 10x. 

Delegating collections to Capchase

When the SaaS vendor’s customers choose to pay with Capchase, the Capchase team manages billing and collections, which is a big win for the finance team, which used to face heavy burdens with that. They’d often have to send manual reminders and ultimately chase down their customers for payment.  

Growing with contract financing 

Capchase helped this SaaS vendor save millions of dollars, if not more, by providing access to revenue through contract financing. With revenue coming in upfront, the founders can maintain control and steward the company into the next stage of growth on their own terms. Successfully delaying an equity raise has allowed their leadership to scale the company, build and nurture a strong, loyal customer base, and develop product features their customers truly want. 

Capchase continues to manage all the installment payment options, transactions, and collections for this SaaS vendor, freeing up their Finance team to focus on more important tasks, and their sellers can  continue to offer flexible payment terms, through Capchase Pay, to meet their customers where they are and win more business.

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Learn more about how you can easily get started with Capchase and contract financing, here.

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