Funding for Early-Stage SaaS Startup in Brazil

1. Introduction

laŭ compliance, led by CEO João Marcelo Alves, was poised for rapid growth in Brazil's burgeoning tech market. With a clear vision and strategic objectives, laŭ sought funding to strengthen outbound sales process for predictable revenue and accelerate software development to better align with market needs.

2. Business Objectives

- Structure the outbound sales process based on predictable revenue streams.
- Accelerate software development to enhance market fit.

3. Financial Requirements

To achieve a runway of 12 months, laŭ required R$ 500,000 in capital. The funding strategy was to raise R$ 300,000 from a Venture Capital Fund at a company valuation of R$ 3 million, based on an ARR multiple of 8x. The remaining R$ 200,000 would be obtained through debt financing via an Innovation Fund.

4. Fundraising Process

CEO João Marcelo Alves had diligently engaged with 16 Early-Stage Venture Capital Funds over five months, identifying the best fit for the R$ 300,000 investment. Simultaneously, he pursued funding from innovation funds specializing in SaaS startups, securing R$ 200,000 from FINEP at an annual cost of 5.6%.

5. Financial Projections

With the infusion of R$ 500,000, laŭ anticipated achieving the following milestones:
- Increase in ARR by 2x within 12 months.
- Expansion of customer base by 30% through targeted outbound sales strategies.
- Launch of new software features to address market demands, resulting in increased customer satisfaction and retention.