For our growth equity investments, RAC looks to back B2B software companies that have demonstrated their go-to-market approach has worked to date, with opportunity for future growth, and for which product-market fit is established. When more proof-points (or time) are needed, we can offer a more measured approach through our growth loans.

RAC’s growth equity investments are true scale-up capital, enabling a company to hire fast and grow quickly. Though a strong foundation for growth has already been built, at this stage, there is the opportunity for refinement and market expansion to come. RAC engages deeply with portfolio companies; leveraging the RAC Acceleration Program and other resources seeking to help maximize opportunity and minimize risk.

For our Growth Loans, RAC looks to back B2B software companies with strong unit economics, and a demonstrated ability to grow (20%+) on a capital efficient basis. Our RBF loans provide the capital aiming to fuel growth initiatives, without setting a valuation or diluting ownership, control or optionality. After investment, some companies raise growth equity rounds; some prime themselves for an exit and some move back to profitability at an accelerated growth rate or with an expanded addressable market.

RAC’s Growth Loans are structured with a capped revenue share, rather than an interest rate, which aligns the performance of our loan to the growth of the company, even in the absence of upfront equity. A 5-year time horizon delays repayment, which can allow a company to invest behind growth initiatives. RAC engages deeply with our lending portfolio, taking a lead investor approach. We leverage resources such as our proprietary Scale IQ customer acquisition tool, the expertise of our in-house team and access to the extensive knowledge of our Strategic Operating Partners seeking to help our companies achieve their vision.