In recognition of that, Scaleworks, a San Antonio-based firm that offers a non-traditional form of capital and debt for B2B SaaS companies, announced this afternoon that it’s spinning out its debt fund as its own entity.
Interestingly, Gallagher (who served as Scaleworks’ director of finance) told me the firm is not looking to raise more money for the debt fund at this time and is instead using the money it gets repaid to do more loans.
Debt financing is popular among founders who might have a “clear growth path” but who don’t need “huge amounts of money” to work on it, Gallagher told me.
Element SaaS Finance lends to companies doing at least $1 million in recurring revenue, with customers and a proven market for their product.
Thus far, the debt fund has completed 16 loans, averaging nearly $1 million.
Pingboard CEO and co-founder Bill Boebel, who got a loan from Scaleworks, said he appreciated the firm’s flexibility and “straightforward terms.”