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Maximizing Runway: How this $50M B2B SaaS Plans to Extend Runway With $7M Debt-Free in 6 Months Before Series D




We recently completed a capital analysis for a $50 million B2B SaaS company that is


planning to raise their Series D next year. In the meantime, they’re evaluating ways to extend their cash runway in the next 6 months.


As an alternative to a traditional bridge round, they also have a path to $7,000,000 in debt-free cash flow by offering their customers financing on their multiyear subscriptions. This allows them to get paid upfront for multiple years of subscription revenue while offloading the future collections risk.


Here’s the breakdown of how they get from $0 to $7M in 6 months.


RENEWAL/INVOICE STRATEGY: They will tap into their current customers for cash flow by offering monthly financing payments in exchange for extending the length of their renewals and invoices. Happy customers who have already implemented will be more inclined to sign longer contracts with favorable payment terms.



✅ The Numbers: Their average renewal or invoice is 2 years with an annual contract value of $30,000. They estimate that 10% of their 1,000 customers will finance with monthly payments, which would generate $6,000,000 in upfront cash.


✅ Retention Rate Bonus: Their financing partner will pay the total contract value upfront, collect their customers’ monthly payments, and assume the non-payment risk. As a result, any customers who finances are no longer a churn risk for the duration of their term which will help improve their customer retention rate.


NET NEW CONTRACT STRATEGY: In addition to their annual payment terms, they will also present monthly payments through their financing program without sacrificing cash flow or incurring the collection risk.


✅ The Numbers: They forecast $18M in net new contracts for 2024 and plan to book 40% ($7.2M) in the first 6 months. They estimate 60% ($4.3M) will be multiyear contracts and 10% ($432K) will opt in for monthly payments. With an average annual contract value of $30,000 and a 2-year term, that means 15 net new customers will finance by July 1st. This will generate an additional $900,000 in upfront cash.


✅ Conversion Rate Bonus: With a new monthly payment option, they will convert more prospects at a faster rate by reducing the immediate cash outlay needed to get started. Solving customer cash flow needs with monthly payments instead of discounting subscription rates and implementation costs will also help preserve margins.


SUMMARY: With 10% of their new and existing customers financing their multiyear subscriptions with monthly payments, within 6 months this $50M SaaS company will generate $7M in debt-free cash flow to extend their runway as they prepare to raise their Series D.



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