The challenge

Getting access to debt products to reduce dependence on equity

Shore was looking for additional funding to extend their runway and, thus, their lifetime. As a digital SaaS company though, it was not easy to get additional funding from most debt providers, seeing as digital assets are often not recognized, and financing terms are undesirable.

Nikbin Rohany (Shore CEO), started talking to equity providers but also wanted to add a debt component to avoid massive dilution of equity and reduce the dependency on one type of financing. Hence, he discussed his situation with CFOs and founders in his network to find a solution.

The solution

Runway extension and building a bridge to profitability with re:cap

From his network, Nikbin heard about recurring revenue financing and started talking to different providers. In the end, re:cap convinced him with its offer, team and product.

With re:cap, Shore is now able to extend their runway and add a debt component to the equity round they were also able to raise. With the additional capital from re:cap, Shore is investing in growth activities and building a bridge to profitability.

By adding recurring revenue financing, Shore diversified and optimized their capital stack and is now able to use the right type of capital for the right investments - for example, using re:cap for growth activities with a predictable ROI, like marketing or sales, while using venture capital for more risky investments, like new product development.

Learn more about how re:cap can extend your runway and enable you to build a bridge to profitability here.