Financing is often THE deciding factor in determining the success of an acquisition. Due to the perceived riskiness, banks often do not provide loans to internet startups and SMBs. This lack of access to funding can prevent you from making acquisitions that exceed your credit line or attract acquisition offers that meet your expectations. It’s a catch 22 that slows acquisitions and curbs entrepreneurship, often grinding both to a halt.
Today, however, we’re delighted to share that we’ve partnered with Uncapped to offer you fast, easy acquisition and growth financing through our marketplace. Yes, life just got a lot easier!
At BitsForDigits, we’re always looking for ways to help startups get acquired, and financing has been a popular request. In fact, when surveying our acquirers we found that more than half of you sought to finance acquisitions with outside capital. With Uncapped, you can find the right startup and the means of acquiring it within our Marketplace, thus widening the pool of buyers for founders. This partnership will increase the speed and ease of acquisitions while ensuring good terms for all parties.
Acquisitions should be a frictionless, frequent occurrence. For far too many, sadly, it’s a pipe dream with showstopping barriers left, right and centre. However, with access to non-dilutive financing, many of the big obstacles standing in the way of owners struggling to extend their startups’ runways or attract acquisition offers for their businesses are removed.
It can take several months to find the right target company, and when you do, seller financing won’t always be enough to close the acquisition. A deal that includes both seller and alternative financing, on the other hand, helps close the gap before the end of the exclusivity period. Business owners get their asking price and acquirers get a business without sacrificing equity or accruing restrictive debt.
But where do you get that financing? Banks don’t understand SaaS, eCommerce, or internet businesses in general and will cause commotion over valuations and financials while ignoring your growth levers. Even if you’re successful, expect onerous terms and personal guarantees. It’s enough to scare anyone off acquiring a startup – especially first-time buyers. Uncapped, however, knows recurring revenue business models and offers financing without debt or dilution.
Business owners and acquirers have a vested interest in making the acquisition a success. Access to financing shouldn’t be a factor in deciding whether a price is fair, nor should one side of the table shoulder all of the downside risk post-transaction. In other words, all else being equal, alternative financing enables a startup to get acquired at a price that leaves both parties happy.
What kind of alternative financing is on offer with Uncapped?
Uncapped is a loan and financing provider for SMBs. They offer revenue-based financing, fixed-term loans, SaaS runway loans and inventory financing. If you’re approved, Uncapped can turn your recurring revenue streams, growth levers and inventory into upfront cash at a flat fee from 2%. With Uncapped, the burden of financing moves from buyers and sellers to the startup’s performance (where it should be).
This is huge! In as little as 24 hours, your startup (whether one you own or want to acquire) could be pre-approved for a cash sum to aid in its acquisition, shaving weeks off the timeline to close. We promised to help startups get acquired, and with Uncapped, acquirers can boldly pursue the right deal, which allows more owners to exit and build their next business.
Alternative financing and internet businesses go together like bread and butter. The similarities in business models, metrics, and growth strategies derisk acquisitions and their financing. Best of all, it’s non-dilutive, which leaves more in the hands of people who’ve earned or acquired it. You can even get non-dilutive financing to fund growth, too.
We’re super excited to partner with Uncapped, the financing experts. As a fully remote company, they’re backed by the world's top investors including Lakestar, Seedcamp, Global Founders Capital, Whitestar, and Mouro Capital (Santander Bank) - early investors in other fintechs such as Transferwise, Revolut, and Funding Circle.
Uncapped has made it easy to apply from within our platform, and you could be approved in as little as 24 hours. Here’s a quick breakdown of how it works:
We encourage you to consider Uncapped financing when acquiring a startup or SME (or selling one). It could drastically reduce the time to acquire, de-stress negotiations, and result in happy faces all around.
Get Uncapped acquisition financing for a $100K+ revenue startup acquisition today:
Need help acquiring a startup? Hire from over 50 approved M&A advisors, right here in the Advisor Directory.
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