Elad Gil posted an excellent analysis yesterday, following on from Chris Dixon‘s post in March, on VC signaling regarding seed-round investments. He mentions ‘bridge financing’ (such as a RevenueLoan from Lighter Capital) as an alternative that eliminates the equity follow-on signalling issue altogether. Here’s the 140 character summary (give or take): A VC seed round investment [...]
“Revenue-Based Finance ‘Feels’ Expensive”
Some times when working with entrepreneurs we get feedback that revenue-based finance (RBF) feels expensive. I’ve heard this enough times now, and seen enough poorly-informed comments on blogs and articles that I figured it was worth a formal blog post, and possibly series on the subject. 1. It doesn’t just feel more expensive than a [...]
Instagram Should Have Gotten a RevenueLoan!
By my calculations, the IRR on the $50MM equity investment that closed and funded exactly one-week prior to the Facebook acquisition announcement, which doubled the investors’ money, is: 497,237,713,464,852,000%. Now that’s an expensive cost of capital!
Introducing: Design-A-Loan, from Lighter Capital!
This week we launched a new feature on our website creatively called: “Design-A-Loan” ! With a minimal amount of data and a couple clicks of the mouse, you can design the financing option that works best for your company and situation. Check it out at: https://secure.lightercapital.com/designaloan.aspx or just click the pic below!
HiveMine Named One of “KMWorld’s 100 Companies That Matter in KM”
HiveMine, the Seattle-based enterprise expertise identification (people, documents, and conversations) and exchange solution provider and Lighter Capital portfolio company, was recently named as one of the ’100 Companies that Matter in Knowledge Management” by KMWorld. This is quite the distinguished list, which includes IBM, Oracle, Apple, MicroSoft, Google, and SAP. Here is the article and [...]
Lighter Capital Named Finalist for Washington Technology Industry Association’s Technology Accelerator Award
We’re excited and honored to have been selected as a finalist in the WTIA’s Annual Awards. We announced our selection in a press release today which I’ve copied below. Thanks, WTIA! Lighter Capital announced today that it has been named a finalist for the Technology Accelerator Award as part of the Washington Technology Association (WTIA)’s [...]
Best Alternative Loans for Small Business, per CBS News
Last week we were pleasantly surprised to see ourselves featured on the CBS Early Show in a piece by Carmen Wong Ulrich discussing the “Best Alternative Loans for Small Businesses”. As startups and small businesses prepare to ring in the new year, it’s usually also a time to plan for the coming fiscal year. You [...]
I’m not just an investor, I’m a client!
Remember this: ? Well, I feel like ol’ Cy Sperling. My wife and I moved to a slightly larger house this week in preparation for our first baby due in April. She’s 6 months pregnant and moving during the holidays meant many of our friends were out of town. For the first time in our [...]
Where Do Entrepreneurs Get Their Money?
2:27 through the end… could not have said it better myself. Hat Tip to BFeld where I saw this –> http://www.feld.com/wp/archives/2011/12/kauffman-sketchbook-where-do-entrepreneurs-get-their-money.html
Semi-frequently asked questions
In the past few weeks I’ve noticed a few recurring questions that I wanted to answer, for all to read. Some of this info is touched upon in our FAQs, but 1) some of it isn’t, and 2) I’ll trust you may be too busy building your business to peruse the deepest chasms of our [...]

