Icertis Raises $150M in Debt Funding as Venture Capital Market Cools


It’s no secret that the venture capital market of 2022 isn’t what it was last year.

Investors have considerably receded and valuations have fallen. This dynamic has pushed many startups to turn to alternative forms of financing that do not rely solely on pure venture capital.

Bellevue, Washington-based contract management software Icertis secured $150 million in financing – an equal split of a revolving credit facility and convertible financing of Bank of Silicon Valley.

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“This new funding from Silicon Valley Bank is a major vote of confidence in our growth trajectory, strengthening our already strong capital position and allowing us to lean in to capture market share and move forward into the next exciting chapter of the journey. of our business,” said CFO Rajat Bahri in a Release.

The Icertis contract platform helps companies structure their commercial, legal and operational data in contracts, and connect this data to its other internal systems such as human resources and CRM platforms.


Convertible notes seem to be becoming increasingly popular with startups as the pullback in venture capital continues (which we mentioned months ago). Debt functions like a short-term loan, but convertible notes are repaid to the investor at a later equity stage – i.e. after an IPO – usually at a discount, and may also include an interest rate. Convertible notes can also benefit the business in the sense of providing initial liquidity without any initial dilution.

In early October, the Eden Prairie, Minnesota-based cybersecurity firm arctic wolf raised $401 million in convertible notes led by an existing investor Owl Rock.

Convertible debt financings also eliminate the need to establish a valuation in a bear market. In March 2021, Icertis announced an $80 million Series F at a valuation of over $2.8 billion. Just at the beginning of this year it was reported the company was worth $5 billion.

Founded in 2009, Icertis has raised over $520 million to date.

Drawing: Dom Guzman

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