Case Study: Klarinet Solutions
San Diego-based Klarinet Solutions used revenue-based financing to drive greater revenue growth and expand digital product line.
Klarinet Solutions needed capital to grow their offerings and better support their clients but didn’t want to give up a stake in the company or lose control by utilizing equity financing. As well, the leadership team wanted a company that could provide advisory support in addition to funding. Klarinet Solutions’ numbers were not trending in the direction the industry was going. Businesses were transitioning to virtual offices much quicker than Founder and CEO Linda Amaro had anticipated and Klarinet Solutions was not able to capitalize on those accounts.
The company compared traditional bank loans and other alternative financing options before ultimately committing to revenue-based financing. Two things drove Klarinet to settle on revenue-based financing with Founders First Capital Partners: not losing control of their business and strategic advisory support from experienced business coaches.
Since Founders First Capital Partners invested in the company:
- Revenue grew 2.5x in 24 months
- Added 4 revenue streams and 2 recurring revenue streams
- Doubled the number of staff
WHAT THIS MEANS FOR YOU
Revenue-based financing is a good fit for your SaaS business:
- Profitable, break-even or on the clear path to profitability
- Recurring or predictable revenues or repeatable customer contracts
- Seeking $50k to $2M in growth capital
Interested in pursuing revenue-based financing for your diverse-led company?
Founder & CEO, Klarinet Solutions
Spring 2018 Bootcamp Graduate
“What was attractive about RBF is that it was scalable to the revenue coming in, to the cash coming in, so that we didn’t feel overwhelmed by having to make the payment. The flexibility doesn’t force us to choose between making a payment or paying our team. The sliding scale is what sold us, that it’s adjustable according to what we could do that month.”