Debt Growth Capital For SAAS Companies
By Recurring Capital Partners
Jul 25, 2019
Private Credit
Jul 25, 2019
A Win for Borrowers and Investors
In recent years, there has been a boom in the relevance of technology and software companies around the world. We spoke with Recurring Capital Partners, is a growth investment firm that specializes in debt financing for Software as a Service (SaaS) and other recurring revenue model technology-driven companies, to highlight the opportunity set behind their niche private credit strategy.
The Software Evolution
In August of 2011, noted entrepreneur and investor, Marc Andreesen of eponymous venture capital firm Andreesen Horowitz, proclaimed that software is eating the world. At the time, global spending on enterprise software was about $270 billion. Today that number is $405 billion, a 6% compounded annual growth rate (“CAGR”) or 3X the growth rate of the U.S. economy over the same period. That software is eating the world, however, doesn’t capture the changing diet. In 2015, Software-as-a-Service (“SaaS”) accounted for only 27% of software deployments. By 2017, that number had grown to 35% and, according to Gartner, is expected to grow to 45% by 2021.
