We're incredibly excited to announce that Ratio has secured $411M to fuel the transformation of B2B financing.
Research shows that SaaS companies could boost their profits by 11% by increasing their prices only by a humble 1%. Yet, SaaS businesses often overlook effective pricing, with most companies investing just 6 hours in developing their pricing models. This will have to change.
Gartner predicts a whopping $232 billion in global SaaS spending by 2024. Yet, only some SaaS firms consistently hit growth rates above 30-40%. How do they do this? It’s due to the 'Rule of 40'. This rule demonstrates that a SaaS firm's revenue growth and free cash flow margin, when combined, should at least be 40%. So, a company growing at 30% should show a 10% free cash flow margin.
McKinsey predicts a whopping 3000% growth in subscription e-commerce by 2025. However, as businesses offer subscription-based payments, it can lead to cash flow challenges. In response to this growing demand, vendors seek solutions that allow payment flexibility without disrupting their sales processes, all while maintaining a steady cash flow.
The Robotics-as-a-Service (RaaS) model is set to reach a $4 billion market cap by 2028, attracting businesses seeking enhanced productivity and efficiency through robotic automation. As RaaS gains traction, robotics companies encounter two main challenges: identifying a suitable subscription model and arranging working capital with flexible, subscription-based payment plans to their customers.
The global revenue-based financing market size is projected to reach over $42MM by 2027. And why not? Recurring Revenue Financing (RRF) is, after all, a compelling alternative for businesses looking to secure quick growth capital without the drawbacks of traditional financing.
SaaS companies facing high burn rates and limited working capital should aim to target a 12- to 18-month runway to effectively manage their accelerated cash consumption. To maintain financial stability, businesses often turn to traditional funding options such as venture capital or loans, which can be fiercely competitive and come with strings attached.
In today's dynamic B2B financial landscape, offering flexible payment options isn't just a convenience—it's a necessity. The reason is the surging demand for subscription-based payments. However, while offering payment flexibility opens doors to improved client relationships and cash flow management, it isn't without challenges. A mishap in introducing or managing these flexible payment solutions can potentially eat into as much as 10% of a business’s monthly revenue.
With the global economic outlook growing gloomier, enterprises are looking to tighten their belts. Forecasting is a vital capability for today’s SaaS companies. Reliable and up-to-date data is essential if SaaS leaders are to make smart decisions, drive enduring growth, and win over investors.
Venture Capital (V.C.) in the U.S. continues to surge in 2023, with projections nearing $70 billion. This presents a prime opportunity for early-stage ventures aiming to scale and thrive.However, the landscape is fraught with challenges. Less than 1% of small U.S. businesses manage to secure V.C. backing, and 25% are still looking for additional funds. For entrepreneurs, it's a path of both opportunities and obstacles.
In the fast-paced startup finance arena, Venture Capital has traditionally reigned supreme—but not without strings like equity dilution and loss of control. In a telling shift, VC funding plummeted to $76 billion in Q1 2023, down 53%.
