Tapline has secured €31.7 million in equity and debt in a pre-seed funding round.
Of the total, €30 million ($33.5 million) of debt financing was provided by Fasanara Capital. The rest of his €1.7 million ($1.8 million) equity round was led by V-Sharp Venture Studio and several other venture capital (VC) investors.
Founded in 2021, Tapline has developed a digital finance platform that helps startup founders finance access to the Software as a Service (SaaS) space. The company mainly focuses on his DACH (Germany, Austria, Switzerland) and Central Eastern European markets.
Rather than exchanging equity for equity, Tapline allows companies to exchange a portion of their future recurring income for cash and borrow against future earnings.
“Having listened to the financing pain points in the market, it is clear that there is a need for alternative financing solutions that are transparent, easy to understand and offer competitive pricing with no hidden costs. It was,” Co-Founder and CEO Dean Hastie said of Tapline.
“Many of the best SaaS companies have proven products and growing customer bases, but need additional funding to fuel further growth. For companies that weren’t, or didn’t want to raise capital, there just wasn’t the right way to raise money in the region to take their business to the next level and continue to innovate.” V Sharp Venture Studios.
“Tapline, with its non-dilutive financing solution, is a perfect fit for this need,” he added.
Tapline isn’t the only company seeing potential in the SaaS lending market.
For example, when PYMNTS spoke with James Hickson, founder and CEO of lending platform Bloom, he said the relative predictability of SaaS revenue makes it an ideal candidate for revenue-based financing. also emphasized.
Like Hickson, Julien Zerbib, CEO of Fintech Lenders Unlimited in France, said that about three-quarters of the company’s customers are subscription-based businesses, and that revenue-based finance is a significant part of the recurring revenue model. said that it can drive significant growth.
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