Edinburgh, Scotland – April 08, 2015 – FreeAgent, the UK’s market-leader in cloud accounting for micro-businesses and freelancers, today announced that it has raised $5 million in growth funding from SaaS Capital. The infusion of new capital will allow FreeAgent to significantly increase its pace of customer acquisition.
“The $5 million in new capital will be vital to helping the company accelerate its growth,” said Ed Molyneux, CEO and Co-Founder of FreeAgent.
“We have historically raised equity and also used some venture debt, but we found the SaaS Capital solution to be a great way to finance our growth compared to those options. It’s a long-term solution, and is particularly well suited to SaaS businesses like ours who have built predictable and scalable customer acquisition channels.”
FreeAgent, based out of Edinburgh, Scotland, provides cloud-based accounting systems designed specifically to meet the needs of small businesses, freelancers and their accountants. Since launching in 2007, FreeAgent has grown rapidly and now more than 40,000 customers use the award-winning software to manage and maintain their business accounts. The proprietary solution simplifies a number of back-office business functions, including tracking time, logging expenses, creating and sending invoices and forecasting and filing taxes.
Teaming with SaaS Capital to finance growth in this way, FreeAgent is able to draw more capital over a longer duration than other lenders, while avoiding ownership dilution. The unique revenue-based line of credit will enable the company to strategically fund long-term objectives – without the rigid requirements of traditional bank loans.
“FreeAgent is exactly the type of company we were looking to assist when we announced our new fund last month,” said Todd Gardner, Founder and Managing Director of SaaS Capital. “The company is expanding rapidly and the team is very strong; they simply needed more capital to seize the market opportunity in front of them. We’re honored to be playing a role in the company’s success, and we look forward to seeing them reach that next level.”
To learn more about FreeAgent visit www.FreeAgent.com
FreeAgent provides the UK’s market-leading online accounting system specifically-designed to meet the needs of micro businesses, freelancers and their accountants. More than 40,000 customers currently use the award-winning system to manage and maintain their business accounts, track time, log their expenses, create and send invoices and forecast their tax bills.
For the past two years, the company has been ranked in the top 20 of the Deloitte UK Fast 50, the annual list compiled by Deloitte that highlights the fastest-growing technology companies in the UK. FreeAgent was also listed in the 2014 FinTech50 rundown of Europe’s most innovative financial technology companies.
FreeAgent won the Practice Software Product of the Year title at the 2014 British Accountancy Awards, as well as the Small Business Accounts and Expense Management awards at the 2013 AccountingWEB Software Satisfaction Awards.
About SaaS Capital
Originally founded in 2006, and launched as a dedicated fund in 2012, SaaS Capital is the pioneer provider of debt-based growth capital for SaaS companies. By leveraging the predictable revenue streams of the SaaS business model, SaaS Capital allows companies to use debt instead of equity to fund investments in sales, marketing, and new product development. SaaS Capital’s line of credit approach combines more availability and longer terms, with more flexible drawdown and repayment, versus other lenders in the market. Through its partnership with DH Capital, SaaS Capital can also assist with a variety of M&A and capital raising advisory services.
Having grown revenue rapidly and proven our business model, we were looking for innovative financing options to finance continued rapid growth. SaaS Capital’s approach was the right fit at the right time for our business.