Welcome to The SaaS CFO Podcast! In this episode, host Ben Murray is joined by Josh Axler, Managing Director at Flow Capital, for a deep dive into the world of SaaS fundraising, venture debt, and revenue metrics. Josh shares his perspective on what makes SaaS ARR truly financeable, the nuances between live and committed revenue, and why understanding the quality of your earnings is critical for securing debt financing. 

Listeners will get practical advice on key SaaS metrics, due diligence readiness, and how to prepare for successful conversations with lenders. Josh also addresses the impact of AI on SaaS businesses, current expectations in SaaS lending, and common misconceptions about equity versus debt financing. Whether you’re a founder, CFO, or operator aiming for growth, this episode offers invaluable insight into navigating the evolving financial landscape for SaaS companies. 

Show Notes: 

00:00 Introduction to Flow Capital 

03:13 Evaluating ARR quality and details 

07:25 Evaluating SaaS Financial Health 

10:08 Finding ideal customer profiles 

15:04 Evaluating SaaS Lending Metrics 

18:43 Using debt for growth capital 

20:17 Challenges with venture debt repayment 

25:07 Evaluating AI impact on business 

26:55 AI companies and revenue concerns 

29:21 Assessing value and revenue impact 

33:49 Contacting Josh for more info 

Links: 

Josh Axler’s LinkedIn: https://www.linkedin.com/in/joshaxler/ 

Flow Capital’s LinkedIn: https://www.linkedin.com/company/flowcapital/ 

Flow Capital’s Website: https://www.flowcap.com/ 

To learn more about Ben check out the links below: 

Subscribe to Ben’s daily metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe 

Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page 

SaaS Metrics courses here: https://www.thesaasacademy.com/ 

Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout 

Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray