I'm curious whether the issue is that there isn't an appetite among LPs for lower-risk, lower-yield investment, or that the indie.vc terms didn't enable enough upside or liquidity?
If it's not VC and it's not loans, what is the answer for funding growth at post-revenue companies that don't fit the hyperscaling model?
Debt and "factoring" (e.g. Pipe[1]) are becoming good options for SaaS companies that might not "qualify" for VC. I started compiling the lenders / fintechs that focus on SaaS here [0].
It depends on the lender. Some of the larger ones take "warrants" to help protect against this. Most lenders (believe it or not) will want to negotiate terms that help you get back on track.
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I'm curious whether the issue is that there isn't an appetite among LPs for lower-risk, lower-yield investment, or that the indie.vc terms didn't enable enough upside or liquidity?
If it's not VC and it's not loans, what is the answer for funding growth at post-revenue companies that don't fit the hyperscaling model?
Debt and "factoring" (e.g. Pipe[1]) are becoming good options for SaaS companies that might not "qualify" for VC. I started compiling the lenders / fintechs that focus on SaaS here [0].
0 - https://www.trypaper.io 1 - https://www.pipe.com
trypaper.io is nice
What exactly happens if u miss payments on these loans? (Do they write it off, negotiate equity, extend and pretend ?)
It depends on the lender. Some of the larger ones take "warrants" to help protect against this. Most lenders (believe it or not) will want to negotiate terms that help you get back on track.
Lots of alternatives emerging these days, like https://tinyseed.com/ or https://earnestcapital.com/ (haven't worked with the latter, but worked with the former)