SaaS Capital, a leading provider of growth debt for recurring-revenue software businesses, announced the closing of its fifth fund, SaaS Capital Fund V, LP, totaling $100 million. The new fund expands the firm’s ability to finance the next generation of “Subscription AI and Software” (SaaS) companies, offering non-dilutive, flexible capital designed to help founders scale efficiently while maintaining ownership.
With this fifth fund, SaaS Capital is extending its long-standing model of founder-friendly lending to meet the needs of AI-driven subscription applications. The firm plans to provide committed, multi-year growth debt facilities to companies with at least $3 million in annual recurring revenue. These funds will support growth initiatives such as product development, sales and marketing expansion, acquisitions, and working capital.
Since its founding in 2007, SaaS Capital has been a pioneer in using future recurring revenue as the basis for lending decisions. It has provided more than $375 million in growth debt facilities to over 120 clients, generating over $2 billion in enterprise value. The company continues to focus on serving B2B companies in the U.S., Canada, Ireland, and the U.K., lending between $2 million and $15 million to qualified businesses—whether venture-backed or bootstrapped. The borrowing base typically ranges from five to eight times a company’s monthly subscription revenue.
The firm’s investment approach remains grounded in data-driven underwriting and a partnership mindset, aligning with founders to promote efficient and sustainable growth. With the rise of AI-driven applications, SaaS Capital aims to reduce financing friction, optimize capital efficiency, and empower founders to retain strategic control while scaling.
KEY QUOTES:
“Founder-friendly, flexible growth debt has helped hundreds of recurring-revenue companies scale efficiently while preserving control. With Fund V, we can now support an important next wave: subscription AI application companies building durable, recurring revenue technology businesses alongside traditional SaaS. Our goal is to provide committed, right-sized facilities that adapt to growth, reduce financing friction, and lower the overall cost of capital.”
Rob Belcher, Managing Director at SaaS Capital
“SaaS Capital has always focused on pragmatic, data-driven credit for recurring-revenue companies. Fund V extends that approach to serve the growing number of teams productizing AI into subscription applications, while we continue to back the core SaaS market. The through-line is the same: align with founders on efficient growth, protect optionality, and deliver capital that works with, not against, the operating plan.”
Randall Lucas, Managing Director at SaaS Capital
