Case Study: Klarinet Solutions
San Diego-based Klarinet Solutions used revenue-based financing to drive greater revenue growth and expand digital product line.
Linda Amaro
Founder & CEO, Klarinet Solutions
Spring 2018 Bootcamp
“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 of 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.”
THE PROBLEM
The company 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 SOLUTION
Klarinet Solutions compared traditional bank loans and other alternative financing options before ultimately committed 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.
THE END RESULT
Since Founders First Capital Partners invested in the company, revenue more than doubled and number of staff increased as well. This allowed the company to augment in areas where they were traditionally not as strong and bring in additional resources that completed the picture. Klarinet Solutions is on track to reach 10 times growth.
Revenues grew 2.5x within 24 months
Added 4 new revenue streams and 2 recurring revenue streams
New SaaS Analytics and Digital Workforce Products
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?
ABOUT THE COMPANY
Klarinet Solutions was founded in 2010, and all three of the company’s leaders have been working with intranets since 1998. The company is proud to be Valo Success Story of the Year for 2018 and Valo Partner and Contributor of the Year for 2017. Klarinet focuses on SharePoint, Office 365 and Digital Workplaces, all day, every day. The company boasts high client retention rates because of its award-winning past and devotion to the making today’s best technologies optimally efficient and easy to use.
The company specializes in three market segments:
- biopharma life science
- legal
- financial institutions
Klarinet’s target companies usually have an estimated 100 employees and their largest client includes 14,000 employees worldwide — making their product, offerings, and services global.
