Starting a business and raising capital is difficult and may often lead to founders having to work with VCs, a lot of whom have never worked in a startup before. That comes with many challenges. And when you’d rather focus on your customers to unlock more revenue opportunities, dealing with fundraising can take up a lot of time. That’s where the British startup Vitt comes in and its vision to become “the first fully digital investment bank” as it has secured a $15m pre-seed funding round earlier this year.
Find founding for your SaaS startup with Vitt
Any SaaS founder with an ARR over £100,000 / €100,000 can apply for Vitt. It doesn’t matter whether it’s bootstrapped or venture-backed. Formerly known as Rail, Vitt describes itself as the “world’s fastest non-dilutive financing option” for SaaS companies. It allows these companies to raise capital against their receivables based on annual recurring revenue streams.
The application process takes about 5 minutes and requires the SaaS to connect their accounts with their system. It offers integrations with popular services like QuickBooks and others. If the application is successful, the system can offer upfront cash against the cash flow projections of the company at a discount.
Vitt’s process certainly seems faster than weeks and months of costly negotiations with VCs and due diligence checks. According to Better Tomorrow Ventures, which is one of the backers, “the rapid digitization of the economy has meant a rise in smaller opportunity businesses that use SaaS models but aren’t viable for venture investors.”
And Vitt can perhaps bridge that gap, allowing the founders an opportunity to unlock their reserves in an innovative manner, rather than relying on a traditional VC model, which is far from universal in this day and age.
YouTube: Saket Kumar (Vitt) On Growing Your Startup On Your Terms W/ Non-Dilutive Financing
Photo credit: The images are owned by Vitt and have been provided for press usage.
Sources: Safiya Marzook (UK Tech Investment News) / Dan Taylor (tech.eu) / James Ledbetter (Observer)