How to Get the Funding that Best Fits Your Startup

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
  • Customer pre-pays
  • Charging non-recurring engineering expenses
  • Donation-based crowdfunding
  • Equity crowdfunding
  • 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.


Raising capital? Know the right strategy for your business

Raising Capital for Tech StartupsMost entrepreneurs see venture capital as the holy grail of funding solutions, but fewer than 1% of U.S. startups ever raise a VC round. There are other options, and some of them might make better sense for your business. This guide will help you decide what kind of capital to raise, when to raise it, and what you need to get it.