Businesses across all industries are shifting to the cloud, a change accelerated by COVID-19 and the complex supply chain and economic challenges that have followed. Vertical solutions that address specific challenges faced within industries have surged in popularity, and markets like healthcare, logistics, and cyber security pave the way for organizations hoping to revamp dated solutions with SaaS platforms. SaaS cloud solutions are in high demand — the time to act is now to leverage this growth and get ahead of the competition to fill the gaps.
For SaaS companies and their lawyers, CPAs, growth advisors, and other invested parties, finding the right funding mechanism to accelerate growth may feel challenging, but one option rises above the rest in its ability to spark swift action. Read on to explore the rise of SaaS cloud solutions and evaluate the best funding option to carry your clients to new heights in this time of high demand.
Growth Projections for SaaS Cloud Solutions
By 2025, it’s estimated that more than half of the world’s data will be stored in the cloud and that 66% of software spending will be directed to cloud services. The world is witnessing a revolutionary digital transformation as the need for modern solutions becomes more pressing. This invites SaaS companies to address the challenges industry leaders are experiencing and utilize the advanced cloud solutions customers are seeking.
This effect is seen even more significantly within certain sectors such as infrastructure and business process markets. For infrastructure, more than half of IT spending will shift from traditional solutions to cloud-based SaaS solutions, as compared to only 41% in 2022. For business application software, the figure rises to nearly two-thirds, as compared to only 57% last year.
For your SaaS clients, the years ahead present a pivotal opportunity for growth, but the time to act is now. Whether your clients would most benefit from sales and marketing efforts, new product development, deeper feature development like AI, or another key growth opportunity, strategic funding is required to carry out their initiatives without delay.
The Best Funding for SaaS Cloud Solutions
SaaS companies have a range of funding opportunities, but one rises above the rest in terms of its flexibility and fast-paced nature, empowering your clients to capitalize on the current demand and position themselves ahead of the competition now.
Venture debt financing is a swift, strategic funding mechanism designed with the shifting needs of SaaS companies in mind. If your clients are early-stage companies that don’t yet meet the demands for institutional loans or to be competitive in the current equity market, you can turn to venture debt as an accessible alternative that equips them with the funds they need to grow.
If your clients are at a later stage in their growth, venture debt makes the ideal match with their existing funding. It complements existing equity by providing fast critical funds that allow SaaS companies to manage their equity dilution and extend their runway. It also sets them up for success ahead of the next raise round by enabling them to carry out the growth measures they need to be more competitive in the equity space.
Venture debt is also available more quickly than other options, getting the funds they need in the hands of your clients so they can put them into action faster. Venture debt lets your clients leverage the strong growth predictions for cloud-based SaaS companies and maximize their impacts. When it comes to repayment, venture debt is designed to serve the needs of borrowers flexibly, offering multiple structures to pay back loans based on what best suits the goals of your clients. Whether they want to pursue a traditional loan structure, pay only interest at first, or have fluctuating payment amounts that grow as they grow, it can be tailored to meet their unique needs.
When you’re seeking the best funding to put your clients ahead, turn to venture debt financing from River SaaS Capital.
River SaaS Capital Supports SaaS Cloud Solutions
At River SaaS Capital, we strive to support SaaS growth with tailored funding mechanisms that empower borrowers to act when it matters most: right now. Our flexible venture debt options enable your clients to customize their repayment terms to what best suits their growth, and we work hard to ensure our funds are quickly accessible to your clients so they can put them into action faster and accelerate their growth momentum.
In addition to strategic venture debt, we offer equity financing options to borrowers that we’ve built a relationship with. We also offer strategic growth insight and GtM strategies, ensuring our support is beneficial at every stage to your clients. Our funding options are always warrant-free and we take the time at the start of every engagement to understand the needs and challenges your clients are facing to determine the best way we can help.
SaaS cloud solutions are in high demand across a multitude of industries. Turn to our team for better, faster funding so your clients can leverage these growth protections and position themselves more strongly in the years ahead.
