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Debt vs. Structured Equity: Finding the Right Fit

Growth-stage B2B SaaS companies are facing a tough fundraising environment right now. There were 88 ($10.1bn) growth-stage software transactions in Q2 2023, down from 204 ($20.7bn) in Q2 20221. Valuations for public SaaS companies remain below historical levels at 7.4x annualized total revenue in Q2 2023, despite improving QoQ2.

It’s been over 18 months since the last VC-backed tech IPO3, and rather than take a flat or down round, software startups that are seeking liquidity are weighing the pros and cons of recurring revenue loans and structured equity solutions.   

Golub Growth partners with you to design the best solution for your unique situation, whether that’s debt, equity or a combination of the two. If you are considering debt or structured equity, we’ve outlined key differences and similarities in the table below:   

Recurring Revenue Loan and Structured Equity differences and similarities

Source: Golub Growth

Let us help you solve for what comes next. Please reach out to discuss how Golub Growth can help fuel continued growth in any environment. 

1. Pitchbook data
2. Bessemer NASDAQ Emerging Cloud Index