Ottawa’s Versature, a provider of cloud-based VoIP communication services for Canadian businesses, has secured $1.15 million in funding through agreements with the Royal Bank of Canada and BDC Capital.
Financing totalling $750,000 has been secured from BDC Capital through its Growth & Transition division in the form of subordinated debt financing. As a result of the BDC Capital financing, and the subordinated nature of the funding, RBC is providing $400,000 through its SaaS financing solution to Versature, which is scalable as Versature’s Monthly Recurring Revenue (MRR) grows.
“Versature has experienced 55% year over year growth and shows no signs of slowing down,” says Paul Emond, CEO Versature. “With this funding, Versature will use our strong foundation of proven processes, SaaS technology and customer traction to accelerate our growth in the Canadian market.”
BDC Capital’s financing was arranged by Mike Blattman, a director at BDC Capital Growth & Transition’s Ottawa office.
“BDC provided a working capital loan to Versature in 2007 and the experience was nothing but positive,” explains Blattman. “The company is well placed to take advantage of the market’s evolution as VoIP business telephony starts to go mainstream.”
Versature says it will use the funds to expand its marketing and sales operations and target new strategic markets.
“Historically, SaaS companies have sourced the majority of their growth and working capital from equity investors but market dynamics have shifted. A growing number are now leveraging their recurring revenue streams by introducing bank debt solutions,” says Nick Albright, Technology Banker with the RBC Knowledge-Based Industries Group.
Versature was founded in 2003.