Cybersecurity Venture Capital Firms
When trying to find the right group of capital partners, you will come across portfolio companies with very specific agendas and ideas about who they want to invest in. Venture partners often invest in three different series:
- Series A: This series or funding round focuses on helping startups who have already proven their potential to optimize their current offerings. Companies who get Series A funding profess value somewhere between $2 million and $15 million.
- Series B: Investopedia says that this series is all about “taking businesses to the next level, past the development stage. Investors help startups get there by expanding market reach.” Most companies are valued somewhere between $30 and $60 million in Series B funding.
- Series C: Typically the last stage of investment, Series C funding is for expanding into new markets and developing new offerings or products.
For some, venture funding rounds have led to productive business growth, optimization, and an increased share of the market. However, the major downside is that cybersecurity venture capitalists usually take some control or equity in companies they invest in. This is not what you want for your cybersecurity company.
Cybersecurity Angel Investors
When searching for an investor, you can also seek out angel investors. Angel investors typically do not provide as much capital as a venture capital firm. Most cybersecurity angel investors have prior experience in the industry. This means that they often serve as great mentors and can provide sound advice.
Oftentimes, angel investors also do not require repayment. This is a major benefit of working with angel investors. Just as with venture capital, however, working with angel investors usually involves giving up some control and equity.
However, there are alternative ways to raise capital. Bank loans have cheap interest rates, but they are almost impossible for startups to obtain. Crowdfunding can provide free advertising, but there are no assurances of how much capital you will attain.
So, what if your cybersecurity company needs significant capital and doesn’t want to sacrifice control or equity?
RevTek Offers Superior Funding for MSPs
We understand that not all successful cybersecurity companies are in Silicon Valley, which is why we are eager to assist startups and early stage companies grow and improve. Venture capital, angel investors, and even bank loans can get your company the capital it needs. However, all of these options result in losing board members and control of your company.
At RevTek, our goal is to benefit your business in the long-term. Our revenue-based financing allows us to provide you capital in exchange for a percentage of your future revenue.
We don’t think the owners of startups and early stage cybersecurity companies should have to lose control of their company just to gain capital. Our financing options offer growth capital without taking any equity or control. We create a repayment system based on your monthly recurring revenue stream.
Our process is quick and easy, and we can provide you as much as two million dollars in funding. You can use the growth equity we provide your company in a variety of areas such as to develop software, focus on sales and marketing, or create new products. Contact us today to learn more about our alternative financing.
More flexible than the bank
We lend more to early-stage growth companies
Interest rates can be lower for bank loans than for revenue-based financing, but beyond small lines of credit, banks rarely lend enough for early-stage growth.
Bank loans contain complex covenants that can be difficult to navigate.
Monthly payments rise and fall with the ebb and flow of your revenue
Your monthly payments
Revenue loan rate
Monthly net cash receipts
Payments adjust to what your business can afford.
The payment rate is always below 10% to minimize the impact on your cash flow.
How fast you repay your loan depends on how fast your business grows
Our loans are normally repaid over 3–5 years, but if your revenue grows faster than planned, you can pay off the loan sooner.
Banks, on the other hand, can make it very difficult or expensive to terminate a loan early.
Far cheaper than equity
Our revenue-based financing uses a simple, transparent pricing model so you know your total commitment from day one
Revenue-based financing has two costs:
A repayment cap,
Minimal legal expenses (usually around $3,500),
The repayment cap is calculated as follows:
Cost of funds
The cap is usually 1.3–1.8x the amount borrowed, paid back over the length of the loan (usually 3–5 years).
Venture capital is not free—in fact it is vastly more expensive in the long run.
The equivalent “payment cap” for venture capital can be 10–20x the amount they invest in you—or more.
And initial legal fees and expenses can easily reach $30,000.
Funded More than 27 Growing Technology Entrepreneurs
As an intermediary, I have had the opportunity of working with the Principals regarding the financing needs of operating companies which I represent. They are very proficient at, being able to "Peel the Onion Back" in analyzing a particular financing need to come up with solutions that would meet the needs of my clients seeking financing. With it being a flat organization, you are always talking directly with the decision makers who are very responsive in their communication of: How to get to a deal or we do not see this fitting into our lending model.
Thunderbird Corporate Finance, LLC
RevTek Capital has evolved into more than a financial partner for our company. While their financial acumen is evident early on, the long term benefit RevTek Capital offers is the ability to dig into the operations side of your business and offer a fresh perspective or a new connection that can further your business. If you're getting started and want a big value add to your financing, RevTek Capital is an excellent choice.
WISPer Ventures / REVTEK Capital went to bat for us early on and has proven to be a great financial partner throughout our record historical growth. They went the extra mile to really understand our business early on, when other lenders simply wouldn’t.
In addition, they have proven to be much more than a direct financing source by helping us raise additional capital from outside sources to further accelerate our growth.
If you are an early stage company seeking growth capital with an objective to minimize dilution, WISPer/REVTEK is the perfect choice.
If you are looking to expand, restructure, or explore alternative options with your SaaS business, RevTek Capital can help you reach your goals.
Our track record proves our capability of aiding SaaS companies and allowing their revenue to grow. Contact us today to learn more about how we can help your SaaS business grow.