Co-Founder and CEO of Bigfoot Capital: Debt for the SaaS Masses

Our Guest: Brian Parks is the Co-Founder and CEO of Bigfoot Capital, a non-venture debt lending firm, that provides growth and bridge debt facilities to SaaS companies with $2+ million in annual recurring revenue.

Episode Topics:

• Current access to capital environment - “2/3 of equity investors and lenders expect to be more active over the next 12 months”
• Disconnects after the failure of Silicon Valley Bank (SVB)
• Unique financing opportunities after disruptions like SVB
• What are the table stakes - like data rooms and timelines - for non-venture-backed software company founders when raising debt capital?
• Bigfoot’s core loan investment criteria (loan size, typical revenue size, and facility size)
• Brian expounds on “being frivolous with equity” quote - “I'm anti-frivolity with equity and think a lot of people are extremely frivolous with their equity, selling too much of their company too early."
• Brian’s perspective on the changing dynamics of whether to bootstrap + the increasing presence of VC in typically bootstrapped categories
• Understanding Bigfoot’s underwriting - lending three to six times MRR - from a credit support perspective
• The absence of equity warrants in Bigfoot's lending model

Resources:
https://bigfootcap.com/

https://bigfootcapital.substack.com/

https://bigfootcapital.substack.com/p/capital-provider-sentiment-survey-17d

https://calendly.com/bigfoot

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Cloud Returns covers ALL types of software investing, whether seed, venture capital, growth equity, private equity, debt, and the public markets.

Our host - Matt Harney - is active on Twitter @saasletter and writes "SaaSletter", an investing-oriented SaaS newsletter on Substack.

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