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.
Growth Equity
For companies that have a demonstrated ability to scale against a sufficiently large identified market opportunity, RAC offers lead-investor growth equity capital and a host of tools and resources to help accelerate company growth.
Company
$4M+ ARR; Demonstrated Market Opportunity and Ability to Scale
Investment
$10-40M+ from RAC; Lead or Follow
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.
Growth Lending
Sometimes an equity round isn’t the right tool for the job. RAC’s form of revenue-based financing (RBF) aims to help B2B software companies drive shareholder value by refining their growth engine, expanding market opportunity or further establishing proof-points ahead of, or in instead of, a larger equity round.
Company
$2.5M+ ARR; Solid Fundamentals
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.
Investment
$1-5M from RAC; Non-dilutive "Royalty-like" Loan
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.
Growth Loans
Popular Use Cases*
Refine Growth
Engine:
- Hire and ramp initial sales resources
- Launch and prove marketing model
- Demonstrate expansion / upsell potential
Expand Market
Opportunity:
- Develop and launch new products
- Geographic or vertical expansion
- Fund an acquisition, merger or integration
Drive Shareholder
Value:
- Bridge to profitability or exit
- Achieve key growth or revenue milestones
- Accelerate growth prior to exit or financing
I can’t recommend RAC more highly for other startups, based on the experience we’ve had with them as a capital partner. RAC’s Growth Advisor Program has helped mature our Go-To-Market (GTM) motion, they have questioned and challenged our assumptions, supported our decisions and were also instrumental in helping us close our recent $110M growth equity round.
We are excited to have RAC as our partner. In addition to the capital investment, having access to their proven methodologies and operational frameworks has been of tremendous value and directly helped us accelerate growth.
I've frequently heard from prospective capital partners that they will "add value" beyond contributing capital, however, I've generally been disappointed, but the relationship with RAC has over delivered. Most importantly, the folks at RAC have proven to be good people -- kind, experienced, and inclined to do the work.
“Working with Riverside Acceleration Capital enabled us to fuel our expansion without diluting our equity. As a result, we were able to focus on hitting the right growth milestones to position us for a larger equity round when the time was right.”
RAC has been an invaluable partner for Ziflow, providing a unique combination of invaluable resources and strategic guidance every step of the way. We would highly recommend them as a capital partner to any software business, based on our experience with them.
“Riverside Acceleration Capital has been a great partner to Masterplan, providing us with both the non-dilutive capital and the resources to help accelerate our growth. Their blend of strategic insight, operational expertise, and a genuine commitment to our success has been instrumental in our journey.”
Without the unwavering support of RAC, navigating through the challenges of the pandemic would have been almost impossible. Their commitment to our success extended beyond financial assistance, providing invaluable resources and strategic guidance every step of the way. As a result, our company has emerged stronger, and more resilient than ever before.
Partnering with RAC has transformed our company. In each of our two rounds of financing they provided the right type of capital at the right time and the operational support has been essential for helping us solve new challenges as we grow. I can't imagine a better financial partner.
Being a founder-led, rapidly growing business in a highly technical domain, our requirements were uniquely met by RAC. They have been a strategic partner both in the boardroom, and operationally. We consider them a true partner on our adventure.
RAC has been a game-changing partner. Aside from the capital they have provided, they have consistently invested resources into the company via their Growth Advisor program which has helped us better understand our business and resulted in acceleration of our growth.
RAC has been instrumental in the growth and development of FreightWise bringing subject matter expertise, experience, and a commonsense approach to growing a business. RAC has simply been a great partner every step of the way.
The value from working with the RAC Growth Advisor team has exceeded expectations. Others promise value beyond the capital, but very few actually deliver it. I believe RAC is unique in this way, and I much appreciate the help and support they have provided.
Our partnership with RAC had a positive impact on our business from the outset. As an Australian EdTech scale-up looking to expand our US presence, their straight-forward advice and guidance has proven invaluable. The Growth Advisor team is experienced, well connected, and have gone above and beyond to deliver hands-on assistance. We’ve been able to leverage their expertise and tap their professional networks to fast-track activity and help optimize our growth.
RAC has been far more than a financial investor to Infrrd. Their capital came with deep conviction, sharp strategic insight, and executive-level coaching. At critical moments, their advice helped me think more clearly, make better decisions, and grow as a CEO. That combination of trust, candor, and experience is incredibly rare—and I’m deeply grateful for it.
RAC’s belief in LoadStop and unwavering support not only changed the trajectory of our future but set the standard for what we expect from a capital partner. Their ability to leverage past experiences to help guide strategic planning and their operational acumen has created highly valuable competitive advantages and efficiencies, enabling LoadStop to grow consistently during a challenging time for our industry.
RAC has been an incredible partner on our journey at Apica. They bring more than just capital — they bring expertise, perspective, and a real commitment to helping us grow smarter and faster. RAC’s partnership has been instrumental in sharpening Apica’s differentiation and driving continued success in our market.
Riverside Acceleration Capital has been an exceptional partner to CyberSaint at every stage of our growth. From providing non-dilutive capital early on, to delivering hands-on strategic guidance through their Growth Advisory services, to investing in our Series A round, RAC has consistently shown up with both resources and real operational insight. Their long-term commitment and belief in our vision have made a meaningful impact on our ability to scale.
“The RAC team were thoughtful, strategic partners who gave us the flexibility to build our business in a cash-efficient way. We worked with Jonathan and the team to scale our go-to-market organization and make strategic acquisitions throughout our SportsRecruits journey.”
“Riverside Acceleration Capital has been an outstanding partner to Ideon—first as a lender and now as an equity investor. Their capital markets expertise and proven operating know how have elevated our company and created real value for our shareholders and leadership team.”
“Our collaboration with RAC marked an exciting chapter for us. Their deep experience and thoughtful approach have helped position us for scalable growth while staying true to our core mission.”
“RAC provided us with the capital we needed, when we needed it. But that's only the beginning of the story. They were outstanding partners, providing flexibility and creative solutions as our needs and the demands of our marketplace changed. RAC stood by us during the good times, and the more challenging ones as well.”
“RAC was the perfect bridge for us during our transition to profitability when equity investment simply didn't make sense. Beyond the capital, Aakash and John provided invaluable mentorship, acting as seasoned sparring partners, who had been in the trenches themselves. Their deep operational experience and network helped guide me through challenging moments as CEO.”
sevDesk provides accounting software solutions to small businesses and self-employed individuals.
Fabian Silberer & Marco Reinbold
Co-CEOs
FURTHER increases revenue and reduces customer acquisition costs for Real Estate and Home Healthcare operators through industry leading prospect engagement technology and analytics.
Wes Fuller
CEO
Cyber Guru is a behavioral cyber security and awareness training platform, offering employee education around the dangers and pitfalls of information security.
Gianni Baroni
CEO