Category | posts

VC Seed Rounds versus RevenueLoans

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 [...]

Read full story Comments { 0 }

“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 [...]

Read full story Comments { 0 }

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!

Read full story Comments { 0 }

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!

Read full story Comments { 0 }

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

Read full story Comments { 0 }