SaaS Capital has announced that it has closed its second fund with $58 million in limited partner commitments.

SaaS Capital’s first fund, which closed in May 2012, raised $22.5 million in limited partner commitments and provided funding to 14 software as a service (SaaS) companies.

“The $58 million, when paired with our bank line, will give us the capacity to fund $75 to $100 million into approximately 25 new SaaS portfolio companies” Founder and Managing Director of SaaS Capital Todd Gardner told SiliconANGLE. “The larger scale allows us to better serve the West Coast by bringing on a Managing Director in Seattle, and also assist bigger, more established SaaS companies with larger investments, up to $10 million.”

SaaS Capital has an interesting model that sees it providing capital to startups in a fashion that is an alternative to a round of equity or traditional senior debt.

They offer companies the facilities to provide additional capital over a longer duration than traditional lenders, with the structure said to allow founders and early investors the ability to retain more ownership and control of the business while still financing significant long-term investments.

Perhaps a more traditional way of describing SaaS Capital is to compare it to a bank that provides a line of credit, however the money drawn down must be repaid over a longer term than that of a traditional bank overdraft. The line of credit facilities range in size from $2 million to $10 million, and SaaS companies are able to draw down on those funds as needed over a space of two to three years, with repayment over an additional three to five years.

SaaS Capital Fund I successfully provided credit to a range of companies including Liquid Planner, which used the debt to grow into an $8 million Series B raise, as well as Clinicient and CoverMyMeds, which skipped a venture round altogether and recently raised private equity from Catalyst Investors and Francisco Partners, respectively. Other SaaS companies that SaaS Capital have provided funding to include Natural Insight, Central Desktop, Certica Solutions, imATHLETE, iModules Software, MBA Focus, Monet Software, Panopto, ProofHQ, ThinkHR, Weblink, Clickability, CareAnyware, and Intradiem.