FEATURED CASE STUDY – 04
Unlocking Non-Dilutive Growth Capital Through ARR Financing
About
Funding Global SaaS Growth Without Equity Dilution
A global data analytics and management company approached us seeking non-dilutive growth capital. The company serves large agricultural organizations worldwide, helping them optimize production through advanced data modeling and analytics tools.
Headquartered in the U.S. with executives based in Argentina and clients spanning multiple continents, the company required an international-friendly financing partner that understood SaaS revenue dynamics.
Problem
Traditional Lenders Don’t Understand SaaS Economics
Conventional lenders assessed the business through short-term receivables rather than recurring revenue, restricting access to growth capital despite strong ARR and retention metrics.
Goal
Access Non-Dilutive Capital for Global Expansion
The client wanted to leverage its recurring revenue base to secure funding for new hires, product expansion, and global growth without sacrificing equity.
Solution
ARR-Backed Growth Facility
We connected the client with a specialized SaaS lender offering facilities based on a percentage of Annual Recurring Revenue (ARR). The lender advanced an initial facility equal to 30–60% of ARR, providing significant liquidity tied to contractual revenues rather than invoices.
SaaS-Focused Financing Strategy
Our approach focused on matching recurring revenue strength with an equally recurring capital structure enabling flexible growth funding without equity dilution.
Phase 1
Evaluated recurring revenue contracts and renewal metrics
Modeled ARR trajectory and historical churn rate
Identified lenders specializing in SaaS-based facilities
Phase 2
Lender Engagement & Facility Structuring
Negotiated facility based on ARR instead of short-term receivables
Structured flexible draw periods to match growth pace
Ensured global compatibility across multiple operating entities
Phase 3
Ongoing Growth Alignment
Additional advances made as ARR increased
Monitored KPIs and lender thresholds to optimize capital access
Maintained control and ownership through non-dilutive funding
Result
Scaled Internationally Without Equity Dilution
By securing ARR-based funding, the company unlocked scalable, repeatable capital that grew with its recurring revenue base supporting product innovation and market expansion.
The client now benefits from ongoing access to growth capital tied to performance, creating a self-reinforcing cycle of expansion and reinvestment without investor dilution.
CASE STUDIES
