Berlin-based Tapline, a provider of non-dilutive financing solutions for B2B SaaS and subscription companies, announced a successful €20M pre-Series A funding round, comprising both equity and debt. With plans to address liquidity challenges faced by subscription-based businesses, this financing will enable Tapline to scale operations and enhance its AI-driven technology platform. The company, co-founded by Dean Hastie and Peter Grouev, aims to empower businesses by offering upfront cash based on future subscription revenues, ensuring these firms retain full ownership of their equity.
What distinguishes this funding round?
This €20M funding round features contributions from industry leaders such as Karim Beshara, General Partner of A15 Venture Capital, and Accelero Capital, along with early-stage VC Antler and key business angels. Tapline also secured a debt facility from WinYield, designed to finance its debt portfolio for SaaS clients. Highlighting the benefits of this structure, Fabricio Mercier, Director at WinYield, stated:
“We are thrilled to support Tapline’s next leg of growth with a bespoke debt facility providing lower cost of operations, new credit assessment functionalities, and credit risk transfer. This will allow Tapline to stay capital-light and focus on the development of its technology.”
How does Tapline leverage AI in funding solutions?
Tapline integrates advanced AI tools to refine financial analytics, risk evaluation, and funding efficiency for its clients. As highlighted by Hastie, their AI-powered system categorizes bank transactions into standardized P&L statements and analyzes subscription contracts, enhancing underwriting accuracy. This allows businesses earning as little as €15K MRR to access funding up to €2M, providing much-needed liquidity without requiring equity dilution. Additionally, their technology supports clients in cash flow forecasting and crafting growth strategies.
In earlier reports, Tapline was recognized for its focus on simplifying access to non-dilutive capital for SaaS businesses, while recent developments place greater emphasis on AI-driven insights and scalable funding models. The adoption of innovative debt structures and advanced AI technology demonstrates an evolution in the firm’s strategy to remain competitive in a challenging economic environment.
Hastie also underscored the growing shift in SaaS pricing models, transitioning from traditional per-seat licenses to usage-based models. Tapline’s adaptable credit underwriting aligns with this trend, ensuring businesses can secure funding while addressing dynamic revenue streams. This approach positions Tapline as a versatile partner amid changing market demands.
Over the next few years, Tapline plans to deploy financing in multimillion figures across its target markets, including Germany, Estonia, the Czech Republic, and Poland. With a goal to achieve break-even by Q3 2025, the company aims to bridge financial sustainability and growth for SaaS firms globally. Hastie shared their forward-looking vision:
“Our key focus for 2025 is to continue to deploy in the 8-figure sums with the business to break-even in Q3 ’25. Over the next 2-3 years, we anticipate multimillion financing through new products, reaching nine figures across our target jurisdictions.”
Tapline’s expanding role in providing non-dilutive funding solutions reflects a broader industry need for capital-efficient models in an evolving SaaS landscape. Its AI-driven platform not only simplifies complex financial evaluations but also accelerates access to resources critical for growth. For businesses navigating macroeconomic challenges, flexible funding options like those offered by Tapline can prove invaluable, especially as the shift toward usage-based pricing gains momentum.
