Disclosure certainty 4/5 debate potential 1/5

Lanius: Alternative has raised just under $15M in debt and equity

Baxter Lanius · He Raised $15m to Help Your New Customers Pay for your Expensive SaaS Plans · Apr 13, 2022 · at 9:32

Baxter Lanius, founder and CEO of B2B buy-now-pay-later startup Alternative, explains how the company funds its upfront invoice purchases for enterprise software sales.

0:00 / 0:06exact quote · 6.8s
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“We've raised just under fifteen million dollars. A portion of that is in the credit facility. And so we fund that transaction through our credit facility.”

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More from Baxter Lanius

Prediction Not checkable as stated
Lanius expects Alternative to earn mid-20s IRR with a 10% net spread
“So we'll be able to earn probably mid, mid, mid twenties. And so our spread on our business is, you know, call it in a conservative manner, about 10%.”
Baxter Lanius Apr 13, 2022 ▶ 18:23 He Raised $15m to Help Your New Customers Pay for your Expensive SaaS Plans
Opinion
Lanius: 2014-era fintech platforms lacked real product innovation
“At the time, I was pretty unimpressed with the platforms that were founded in that timeline because ultimately many of them were just customer acquisition moats and strategies around websites and podcasts and news, et cetera. And there were not really many com…”
Baxter Lanius Apr 13, 2022 ▶ 1:33 He Raised $15m to Help Your New Customers Pay for your Expensive SaaS Plans
Insight
Lanius: Pay-over-time financing reduces B2B pricing negotiation time by up to 50%
“When you think about pricing negotiations as well as part of the sales cycle, it is a significant portion of the sales cycle, and if you can limit that by 50% or 20% by allowing customers to pay over time, it's also an amazing value add.”
Baxter Lanius Apr 13, 2022 ▶ 5:10 He Raised $15m to Help Your New Customers Pay for your Expensive SaaS Plans
Disclosure
Alternative secured a credit facility with zero unused line or upfront fees
“And we ultimately don't have unused fees on our credit facility. So, you know, we have a basically a flat rate associated with deployed capital. There are no upfront unused fees and incremental spend, which I think you see in most obviously typical and traditi…”
Baxter Lanius Apr 13, 2022 ▶ 11:08 He Raised $15m to Help Your New Customers Pay for your Expensive SaaS Plans
Disclosure
Lanius: Alternative Chose an 80% Advance Rate Despite 90% Option
“Our advance rate is actually at 80% for a number of strategic reasons, but yeah, we had the ability to go up to 90%”
Baxter Lanius Apr 13, 2022 ▶ 13:17 He Raised $15m to Help Your New Customers Pay for your Expensive SaaS Plans
Insight
Lanius: Fintechs should not always maximize their available debt leverage
“Taking out, you know, as much leverage as what's available to you is not always the best strategy.”
Baxter Lanius Apr 13, 2022 ▶ 14:06 He Raised $15m to Help Your New Customers Pay for your Expensive SaaS Plans
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