Recurring revenue streams from SaaS startups may soon get securitized, ushering in various debt financing products that may upend the VC growth financing model
Ten years from now, what seismic change will we reflect back on and think, “well that was pretty obvious, in retrospect”?
Debt is coming for startups. And also, for data? 1. Start to sell streaming data on a data marketplace 2. Get to predictable revenues 3. Securitize it! Sell bonds for others to share future revenues. Use proceeds of those bonds to invest in growth. https://alexdanco.com/...
This is a fantastic piece... and something to think about when so many of our tech solutions are now commonplace. We use phrases like “low-risk” & “crossed the chasm” to assure CxOs to deploy them — more evidence our funding model is ripe (or almost) for the shift. https://twitte…
“Here is a widely believed cause-and-effect relationship I bet you've never thought to invert before: because most startups fail, therefore equity is the best way to finance them. Have you ever considered: because equity is how we finance startups, therefore most startups fail?” …
I think this article misses the fact that debt has already come to the “tech industry,” or at least the parts of it that can model cohorts and provide transparency around that modeling. See: ClearBanc https://alexdanco.com/...
Amazing read. Debt is coming to the tech industry. Makes perfect sense to introduce funding mechanisms with lower cost of capital than VC to SaaS businesses with predictable recurring revenues. We'll see entrepreneurs have more options a few years from now https://alexdanco.com/.…
Underappreciated truth. Reminds me of the “Debt is not a Four Letter Word” blog that I never finished. Question will be whether it is tried from the inside out (bad) before it can be done from the outside in [of Silicon Valley funds]... https://alexdanco.com/...
Fascinating perspective! “There is nothing inherent to tech companies that requires that so many of them fail to live up to their aspirational valuations, aside from the way they're funded.” https://alexdanco.com/...