eDiscovery and Litigation support leader secures growth capital in a non-dilutive raise to assist the company in fueling its rapid growth.
CHICAGO, IL, OCTOBER 27, 2021
Nextpoint, the industry-leader in cloud-based eDiscovery and Litigation support software, has secured $4.5 million in non-dilutive, growth capital. Sterling National Bank is providing $2.5 million in a senior facility, and Bigfoot Capital is providing $2.0m in mezzanine financing.
“We’ve been profitable and self-funded for 20 years. We plan on staying that way. These facilities demonstrate that our way of doing business, consistently, sustainably and customer-driven were the right way to build a SaaS business. The new facilities will be used to scale our product offering and customer support to stay ahead of our rapid growth curve,” said Nextpoint CEO and Founder Rakesh Madhava.
The senior facility originated out of Sterling National Bank’s Innovation Finance Group. The group focuses on providing a full suite of lending and banking products to growing technology companies across all stages of development, including asset-based solutions, recurring revenue-based revolving lines of credit, treasury management, foreign exchange and other solutions.
“Nextpoint’s done a great job of bootstrapping a high-growth business with momentum. We’re happy to be able to assist them with their next phase of growth,” said John Hoesley, Head of Innovation Finance.
The mezzanine facility is backed by Denver-based Bigfoot Capital. Bigfoot helps companies fund growth with scalable, non-dilutive loan facilities while also playing a supporting role.
“We’ve never taken a warrant in our five years of lending to SaaS companies. It’s just not what we do and runs counter to our reason for being,” says Bigfoot Capital Founder, Brian Parks. “We’re in the boat rowing with Nextpoint, not on their cap table diluting the owners of the business. We’re excited to be working with them and believe in their growth strategy.”
Nextpoint delivers powerful cloud-based technology that automates litigation workflows for all matters from eDiscovery to trial. Founded in 2001, Nextpoint continues to see rapid adoption of the company’s industry-leading software by law firms, corporations and government agencies of all sizes. Nextpoint is committed to helping organizations simplify their litigation technology.
About Sterling National Bank
Sterling Bancorp, the principal subsidiary of Sterling National Bank, specializes in the delivery of financial services and solutions for small to mid-size businesses and consumers within the communities it serves through a distinctive team-based delivery approach utilizing highly experienced, fully dedicated relationship managers. Sterling National Bank offers a complete line of commercial, business, and consumer banking products and services.
About Bigfoot Capital
Bigfoot Capital provides growth debt facilities up to $5M to B2B software companies with $1.5M-$15M in revenue. Bigfoot operates across the U.S., partnering with bootstrapped and venture-backed B2B software companies that understand the value of their equity and the benefits of holding onto it.
Check out Bob Ambrogi’s LawNet podcast to hear a conversation with Rakesh Madhava, where he discusses Nextpoint’s ongoing growth and progress after 20 years of innovation in legal technology.