Make the power of revenue work for you
Financially empowering entrepreneurs to focus on what they do best: building innovative
During the past few years, there has been an increase in alternative financing methods outside of straight equity and debt for fast growing and later stage SaaS (Software as a Service) companies. However, still today, we see the pain points of fundraising for these companies as being:
- Time consuming;
- Dilutive to its founders;
- Debt financing comes with expensive strings attached such as liens and warrants; and
- SaaS companies are selling annual subscriptions at a discount resulting in a loss of
To solve these pain points, Tapline was created. Tapline is where companies can finance future growth by making their recurring revenues work for them.
What is Tapline?
Tapline is a two-sided platform that allows SaaS companies to trade their recurring revenues for instant cash in a non-debt, non-dilutive way to further grow their business. On the other side, institutional investors bid and subsequently purchase these recurring revenues to earn a return over a 12-month period. Call it Money Market 2.0 for these investors.
With four easy steps:
- SaaS companies sign up to Tapline’s platform;
- Tapline seamlessly connects with these companies accounting, subscription management software as well as bank accounts and validates them on the platform;
- Once approved, our risk models determine a certain amount of subscription contracts that can be traded for capital; and
- Effectively, turning SaaS companies MRRs (Monthly Recurring Revenue) into upfront instant cash to further grow their business on their terms.
With this, we are unlocking revenue as an asset class so founders can finance their business without the need to raise dilutive capital or restrictive debt.
Let’s look at an Example
SaaS companies who have MRR at €50k. At a successful discount rate bid of 5% by investors, the company receives € 570k instantly to further grow its business.
This capital is then used to hire that super sales or tech teams to further aid the growth trajectories of these companies…at pace. Investors on the other hand enjoy a 12-month return, distributed in equal monthly payments over the period.
SaaS companies’ end clients don’t even know that Tapline exists, they continue to keep billing their clients the normal way with no interruptions from Taplines platform.
Cultural and demographic changes have resulted in the vast proliferation of subscription-based business models. In the EU alone, the subscription market is expected to grow at a 19% CAGR tipping north of EUR 37billion in 2025. The entrepreneurs of today and tomorrow require funding alternatives as they scale their businesses.
Adding to this, with the rampant adoption of SaaS client usage of subscription managers, accounting software as well as open banking, it has allowed for much easier data access. The result of this is faster digital financial analysis and validation of investing in subscription-based technology companies. We like to call it due diligence 2.0.
The future is here!
Sign up to Tapline TODAY as a SaaS company and investor to receive first adopter benefits https://tapline.io/