If you’re trying to raise money for your business, there are now many alternatives to VC funding, particularly for smaller tech companies. Our CEO BJ Lackland wrote a guest post on VentureBeat called “Smarter funding: How to get the backing that best fits your startup.”
The traditional VC equity model creates a cycle for entrepreneurs of found, build, raise, grow, raise, grow, and then exit, hopefully at a top valuation. The problem is that this model may not be the right fit for many small but growing tech startups, BJ notes. “Things have changed over the past decade, and entrepreneurs should adjust their mental framework about startup financing accordingly.”
Startups have more ways to use different funding options. BJ walks through the pros and cons of each type of funding and shares guidance on which types are best for certain types of companies, including:
Revenue-based (or royalty-based) financing
Charging non-recurring engineering expenses
Line of credit
The VentureBeat post is just one of many recent articles about Lighter Capital and revenue-based financing. Check out what other media, including Forbes, Fortune, HuffingtonPost Biz and NASDAQ have to say about us, and let us know what you think—we’d love to hear from you.