Use your growth capital to reach your business goals. Whether you’re aiming to grow your valuation, scaling sales and marketing teams, acquiring new IP, or just cleaning up your cap table, we stay out of your way so you can get down to business.Read More
Grow Your Valuation
Non-dilutive financing from TIMIA can help founders grow their ARR sustainably and increase their valuation.
One of the most popular questions asked by SaaS founders is “How do I value my SaaS business?” Valuations are important to entrepreneurs seeking a healthy exit or a good VC deal.
While ARR is just one factor in early-stage company valuations, it plays a bigger role in growth-stage company valuations. For example, if your ARR is $1 million to $3 million, your valuation multiple might be three times ARR. If you can grow your ARR to from $3 to $10 million, you can increase that valuation multiple to six to ten times ARR.
By leveraging non-dilutive financing to grow the business sustainably from $1 million to $3 million and $3 million to $10 million, founders are in a much better position for an exit or VC event.
Giving up 20% of our company at the current valuation makes no sense. TIMIA Capital gives us time to get back to double-digit growth rates, grow our valuation, and raise capital when the environment is better.
The goal was to grow Noibu’s growth rate and ARR so that it would be in a strong position to raise equity financing down the line, and that’s what TIMIA really allowed us to do.
TIMIA’s investment is simply cheaper capital. There are equity firms who would happily give us more money right now. But because of the low valuation they would offer, the cost of capital would be enormous in the medium- to long-term.
TIMIA’s investment has helped us accelerate our path to profitability. Our company valuation will skyrocket once we’re profitable so the sooner we get there, the better.
This investment will give us more breathing room on our balance sheet and give us options if we want to accelerate investment in our innovation and growth. I typically use a simple net present value calculation based on the cost of capital and the cost of investments we can make to accelerate the enterprise value of the business.
Scale Sales & Marketing
Non-dilutive financing from TIMIA can help founders build and drive their sales and marketing engines.
You’ve proven your product-market fit and now you just need some funding to build and fuel your sales and marketing engine.
Non-dilutive financing can help you fund new sales and marketing talent, purchase sales and marketing technology, increase advertising budgets, build repeatable sales models, and so on.
In essence, it’s like accessing your future ARR today!
Short-term loans end up being very expensive and inefficient. Since we are consistently doubling the inventory required, we need a more sustainable long-term solution. That’s when we found TIMIA.
We plan to use this investment to drive deeper ‘platformitization’ of our solution and create an ever more scalable product to meet customer demand. TIMIA’s investment will help us fund this platform expansion, building more robust APIs and enabling further low code and configuration deployments. At the end of the day, it’s about allowing our customers to move faster and reduce capital expenditures.
As a scaling company, one thing you forget is that you need money to service customers. The TIMIA investment will also help to cover accounts receivable for 30-50 days and help with cash flow.
Our first priority was always the product and supporting our customers. We were launching a new enterprise product category in the market so R&D required most of the resources early on. Once the enterprise product launched, our second priority was to invest in sales and marketing to drive growth.
Clean Up Your Cap Table
Non-dilutive financing from TIMIA can help founders buy out investors who have reached the end of their time horizons.
Tired investors can hinder the forward traction of your company. Sometimes they put unrealistic growth expectations on the team and apply pressure to take on more equity funding. Other times, they prevent you from raising much-needed growth capital because they don’t like the valuation.
Founders and management teams in either of these scenarios often consider ways to break free. However, most debt providers want their capital to be used to fuel growth—not to pay off equity owners.
TIMIA is comfortable managing the risk. We’ve developed a tech-enabled platform that helps us identify and invest in SaaS companies so they can use their stable revenue growth to buy out investors, clean up their cap table, and enter an exciting new phase of growth.
Acquire New IP, Talent, or Market
Non-dilutive financing from TIMIA can help founders make acquisition decisions that can help them fill a gap in their solution, talent pool, or simply to acquire a customer base.
While debt financing is one of the most common ways to finance acquisitions, most growth stage companies lack the assets to back the debt and most venture debt providers want their capital to be used to fuel growth—not to acquire new companies.
TIMIA, on the other hand, is comfortable managing the risk. Our tech-enabled platform that helps us identify and invest in SaaS companies so they can use their stable revenue growth to make acquisition decisions that will lead to even more growth!