NEW YORK, N.Y. – April 1, 2014 – SaaS Capital, the largest provider of alternative financing for SaaS businesses, announced today that it has provided a $3.0 million line-of-credit to ThinkHR. Based in Pleasanton, Calif., ThinkHR provides a comprehensive collection of cloud-based resources and hotline access to a team of live HR subject-matter experts who provide unparalleled advice for the most critical and complex situations. ThinkHR will use the proceeds of the facility to enhance product development and expand market reach.
As a market leader, ThinkHR is perfectly positioned for continued, significant growth and market expansion. “Businesses doing as well as ThinkHR have many equity financing options available to them, and so we are pleased they recognized the value of using our unique type of leverage at this particular point in their development,” comments Todd Gardner, CEO of SaaS Capital. “ThinkHR is entering a window of tremendous value creation in the next 18 months, so having the ability to access additional capital – with very little dilution – is a particularly compelling scenario. We look forward to supporting their growth as one of our portfolio companies.”
With access to $3 million from SaaS Capital, ThinkHR has the flexibility to develop and deliver new products, and bring its services to new and large, untapped markets, like the SMB market. Businesses with fewer than 500 workers employ almost half of private sector payrolls, according to the Small Business & Entrepreneurship Council. ThinkHR saves these businesses time, reduces HR and related costs, increases HR compliance, and helps employers and their employees have better working relationships through its Live HR Advisor hotline and on-demand resources that include vital workforce management information – such as federal and state compliance and healthcare reform – as well as HR forms, a Q&A database and employee handbook builder.
“ThinkHR has become known as a trusted HR resource for companies of all sizes, particularly small and mid-sized businesses, because of the high-quality experience we offer our customers. The reason: We offer more than just content, we offer immediate solutions,” said Pete Yozzo, founder and CEO of ThinkHR. “With the volume of new and changing legislation hitting our customers regularly, ThinkHR has experienced significant growth in the past year, and we are going to continue growing to meet market demand. Our funding from SaaS Capital is the fuel we need to capitalize on the explosive market opportunity before us.”
About SaaS Capital
Founded in 2006, 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. To learn more about SaaS Capital, visit www.saas-capital.com.
ThinkHR is a comprehensive cloud-based HR resource center that offers a unique combination of online compliance and employee training solutions, as well as a live HR hotline staffed by seasoned HR advisors to help companies ensure HR compliance, quickly resolve people issues, and implement best practices and training to optimize employee performance. With this combined approach, ThinkHR delivers the fastest, most personalized issue resolution and learning platform in the industry. The company was founded in 2005 and is headquartered in Pleasanton, Calif. For more information, visit www.ThinkHR.com.
Although we received several outside funding offers, we knew SaaS Capital was the best fit for us at this stage. Working with SaaS Capital we’re able to avoid both the strict requirements of traditional bank financing and the ownership dilution that comes with an equity investor.
Founder and CEO, Webgility