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Reeher leverages SaaS Capital funding to drive growth, increase net equity by $20.3 million, and position for acquisition

.5 x
RETURN ON CAPITAL
$.5 M
COST OF EQUIVALENT EQUITY FUNDING
$.5 million
COMMITTED CAPITAL AVAILABILITY OVER 2 YEARS
$ K
TOTAL COST OF CAPITAL OVER 2 YEARS
$.3 million
NET EQUITY VALUE CREATED

“We had regular conversations with the executives from peer SaaS Capital portfolio companies. It was very helpful to connect with that network of CEOs to talk and learn from each other about common operating issues. Other lenders didn’t offer that kind of opportunity and that was a big reason SaaS Capital was so helpful to our business.

| Andy Reeher, CEO & Founder

Background and Situation:

In 2016, Reeher, an emerging leader in the field of fundraising and development solutions, found itself at a crossroads. The company was demonstrating solid growth and retention, but it needed a bit more runway to tune company performance and optimize valuation. Reeher’s founder and CEO Andy Reeher knew that if he could drive stronger results in both these areas, he could maximize valuation prior to a strategic event.

“As the company approached the point where a strategic exit would be an option for us, we knew that driving solid results would maximize our valuation. We wanted funding that would let us pursue our strategic goals without losing control, and ideally, not include the expense of an equity raise. That’s why growth debt from SaaS Capital made sense for us.”

SaaS Capital Solution:

SaaS Capital provided Reeher with $2.5 million of growth debt that Reeher deployed to improve sales and customer success efficiencies.

“Our sales model had matured and was producing consistent results for us. We just needed time to let it deliver the results that we knew were possible. Our customer success initiatives were newer, and we wanted to fund strategic investment in this area to drive strong retention numbers even higher.”

Benefits to the Company:

True to Andy’s vision, Reeher was acquired in April 2018 by Blackbaud, a leading provider of cloud software and former competitor of Reeher. The strategic acquisition resulted in Reeher's technology being fully incorporated into Blackbaud's product suite and used by a broader set of organizations.

  • At the time of the acquisition, Reheer exited the SaaS Capital portfolio, having paid $666K in fees to access $2.5 million in growth debt.
  • Financing an equivalent amount of equity would have cost Reeher approximately $4.5 million.
  • The strategic use of SaaS Capital growth debt enabled Reeher to increase the net equity value of the company by over $20 million.

Beyond funding, Andy Reeher mentions the value of being able to connect with peer executives at other SaaS Capital portfolio companies as part of the events that the SaaS Capital team coordinated quarterly.

INDUSTRY: FUNDRAISING & DEVELOPMENT   ›   FOUNDED: 2002  ›   FUNDING DURATION: 25 MONTHS  ›   REVENUE GROWTH: 66%  ›   EXIT EVENT: ACQUIRED

“The SaaS Capital team just gets the SaaS model. Bank financing wasn’t really an option at the time we were looking for funding, and when I met the SaaS Capital team, it was my sense that because they had figured out this financing model early, they offered a great partnership and helpful expertise.”

 

Reeher SaaS Capital Funding

Reeher was acquired by Blackbaud via strategic acquisition in 2018. The Reeher product line was then fully integrated into the Blackbaud offering, and Reeher exited the SaaS Capital portfolio at the time of the event. Blackbaud is the world's leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, healthcare organizations, and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing and analytics. For more information, visit www.blackbaud.com.

 

 

﹡A note about calculating the cost of equivalent equity:
The cost equivalent equity is calculated as (Amount Borrowed/Pre Money Value)*(Exit Value).

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