Cacheflow Raises $6M to Revolutionize SaaS Buying

Cacheflow Emerges from Stealth with $6 Million Seed Funding

Cacheflow officially announced its launch today, alongside the completion of a $6 million seed funding round.

The company is founded on the belief that the current process for purchasing software is outdated and increasingly frustrating for businesses. Consequently, Cacheflow is developing a combined purchasing service and financing solution designed to streamline the experience.

Investment Details

The seed round was led by Glenn Solomon of GGV, with additional investment from Pelion Ventures and Neythri Futures Fund. Neythri Futures Fund is a unique investment collective focused on increasing representation of South Asian women in venture capital.

Sarika Garg, CEO and co-founder of Cacheflow, highlighted to TechCrunch the significance of a diverse investor base, both in this funding round and within the company as a whole.

According to Neythri Futures Fund, South Asian women represent a very small percentage – less than a quarter of a percent – of U.S. venture partners. Including them in Cacheflow’s ownership structure early on could significantly improve investor demographics should the company achieve success.

Addressing a Changing Software Market

Cacheflow’s core premise is well-timed. Garg notes that traditional, lengthy software procurement cycles involving extensive networking are becoming less common.

Modern businesses are acquiring more specialized software solutions than ever before. However, despite this increased demand, the sales process often remains surprisingly manual, involving numerous calls, documents, and electronic signatures – a reality confirmed by those in SaaS sales.

Many software companies prefer annual contracts with upfront payments to improve cash flow. This can create inflexibility, particularly when businesses might anticipate more adaptable payment structures.

Cacheflow’s Solution: Flexible Payment Options

To address this, Cacheflow aims to provide buyers with a range of payment choices while simultaneously offering software companies immediate cash flow.

Customers will be able to select monthly, quarterly, or deferred payment plans for their software contracts. This flexibility can enable purchases even when budget cycles are exhausted, according to Garg.

This also allows software vendors to maintain more consistent sales without being reliant on annual budget resets.

Managing Risk

Cacheflow acknowledges the risk associated with assuming responsibility for contract payments. If a customer defers payment while the provider receives funds upfront, there is inherent financial exposure.

Garg explained that her company utilizes SaaS metrics to assess a customer’s financial stability and the likelihood of continued software usage, mitigating this risk.

Early Stages and Future Growth

The startup is currently working with a limited number of pilot customers and plans to expand its client base in the coming months. Being newly launched, Cacheflow is still in the initial phases of operation.

A Growing Market

The checkout technology sector has seen significant investment recently, with companies like Checkout.com, Fast, and Bolt securing substantial funding. Similarly, SaaS financing services, such as Pipe, have experienced rapid growth.

Cacheflow represents a convergence of these two trends.

Looking Ahead

Cacheflow believes it can accelerate and simplify the SaaS buying process, leading to improved sales for software companies and a more efficient experience for buyers.

Given the expanding size of the software market, these objectives are logical. The company’s success now hinges on its ability to integrate its solution into a wide range of SaaS checkout processes and generate substantial revenue.