The news: SaaS Capital, a lender that provides software-as-a-service startups with alternative financing options to traditional venture capital, raised $128 million for its fourth fund, up from its $75 million third fund raised in 2018. The model: Founded in 2007, SaaS Capital specializes in providing lines of credit that don’t dilute a company’s cap table, and allows the firm to avoid discussions about valuation or control provisions. Its debt offering is based on a company’s annual recurring revenue, with a stated interest rate.