#Featured

Navigating the Great Resignation

Navigating “The Great Resignation” and Lessons from a Lighter Capital portfolio company, by Melissa Widner, CEO Lighter Capital Nothing strikes terror in the heart of a company leader more than the prospect of losing valuable team members. The US has been in the “great resignation” since late 2020. According to the most recent JOLTS report, a record number of 4.3 million Americans left their jobs in December 2021. I assumed the CEO role at Lighter Capital in September 2020.

2021 Deal Roundup

2021 has been a very exciting year for Lighter Capital. We are proud and privileged to assist all of the companies that we provided capital and support to this year. With non-dilutive transparent financing, all of our clients can keep their equity, board seats, and vision intact and face no hidden costs or fees. We really appreciate and value our returning clients. Time and time again, clients seek additional funding from us because they truly value growth capital on their o

Lighter Capital + Modern Logic 2022 Webinar Series Scaling and Accelerating SaaS Startups

Modern Logic and Lighter Capital Partnership Lighter Capital and Modern Logic, a digital product studio, have teamed up for another 4-part webinar series that is sure to boost the success of your SaaS Business. After the success of our first series – ‘Building SaaS Products that Scale’ over 2021 – we’re back with a new lineup. This series will be on ‘Scaling and Accelerating SaaS Startups’. We’ll demystify four areas of scaling a SaaS business: Sales, Marketing and the Buyer

[Partner Blog] How to Forecast Recurring Revenue

By: Our partners at Clockwork Recurring revenue seems pretty simple on the surface, but just because recurring revenue is “predictable,” that doesn’t mean forecasting recurring revenue is easy. Month-over-month growth assumptions can paint a general picture of MRR for investors, but if you really want accurate projections – the type that’ll help you navigate strategic decisions and optimize your finances – you’ll ultimately need a more detailed forecast. The bad news is that

Inaugural Founder and CEO Summit 2021: More Than Money

With over 10 years of providing revenue-based financing to our clients, we’ve built an impressive portfolio network of SaaS businesses. We take pride in helping our clients succeed. In an effort to give more than money (and partner perks), we are prioritizing community. The launch of our Inaugural Founder and CEO Summit was the first of many in-person events to educate and foster connections between entrepreneurs. Lighter Capital Founder and CEO Summit 2021 “Real people with

What Startups Need to Know About Seeking Financing During the Pandemic

In the midst of this global pandemic, startups are working tirelessly to keep their business running. For many, that means securing financing that will help to maintain business continuity today and also extend to future planning. The health of your business is more important than ever, and the capital choices you make now will have a lasting impact on the trajectory of your company. The pressure’s on, but this is not the time to rush blindly into a financing deal that may no

7 Ways Your Startup Can Thrive In A Tough Economy

In the span of a few short months, the entire global economy has changed. The way we work has changed. Even the way we live our daily lives has changed. It’s like there has been a huge tectonic shift in every aspect of life and business. Nobody knows with any certainty what the “new normal” is going to look like, whenever it finally arrives. What we do know is that many businesses will survive this economic turmoil just as they have in the past, and when the opportunity prese

Know and Maximize Your Runway

It’s a difficult and confusing time to be an entrepreneur. People are relying on you. Investors may be pressuring you or showering you with advice (solicited or not). You’re reading expert opinions, and finding that many experts disagree. We’re all yearning for a crystal ball. What’s next for 2020? A U-shaped recession. A V-shaped recession. Or even a W-shaped recession. No one knows with any certainty what’s to come. In a U-shaped recession, startups that survive will likely

What are Stock Warrants and Why Lighter Capital Doesn’t Use Them

At Lighter Capital, our Investment Team encounters a lot of questions from startup founders about the features of our financing solutions, such as early payoff provisions, minimum return requirements, stock warrants, debt covenants, and even whether we require a personal guarantee. We previously covered the latter two concerns, but you may still be wondering, what is a stock warrant? How do warrants work? And does Lighter Capital require them for our financing? These are all

The Role of Data in Venture Capital and Revenue-Based Financing

Data matters at Lighter Capital. It’s the primary tool we use to make financing decisions. Data matters to venture capitalists (VCs) as well. But is it the primary tool that VCs use to make investment decisions? No, according to survey-based research published by PitchBook. As a data-oriented person, I was interested in the numbers behind how VCs use data today (I would have been more interested had the research been based on actual data rather than a survey). Reading the stu

What Are Debt Covenants and Why Lighter Capital Rarely Uses Them on Loans

What is a covenant? A covenant is a type of agreement often found in contracts, which obligates one or more parties to either engage or abstain from some specific action. Covenants are unconditional promises that when breached entitle the other contracting party to damages, remediation, or termination of the contract. If you’ve ever signed a contract of any kind you are likely already familiar with the idea that covenants are usually baked into the agreement. A contract stipu

Considering a Business Loan? Don’t Ignore the True Cost of Capital

When considering a business loan to finance your capital needs, you’ll no doubt encounter a number of funding options. There are several types of loan options that provide business owners with cash quickly to help them meet a short-term need for capital, but there are a number of elements you need to examine to better understand the true cost of capital. What to look out for when seeking a business loan Annual percentage rate Naturally, one of the first things you look at is

How Revenue-Based Financing and Venture Capital Funding Work Together

As Chief Credit Officer at Lighter Capital, I work behind the scenes grappling with the data that informs all of our decision-making regarding financing deals, from revenue-based financing (RBF) to term loans and lines of credit. Similar to a venture capitalist (VC), I try to understand where startups are in their life cycles — and where they can expect to go. Recently, several VCs have asked for my perspective on how — and whether — RBF, term loans and lines of credit fit in

How to Improve Scalability in Cost Structure

Scalability is a searing hot topic among entrepreneurs and investors these days. Startups must have a firm grasp of how scaling a business is different than growing it, and why scalability in cost structure is an essential ingredient to business success, especially in today’s digital era. Lucky for SaaS startups, software companies are already ahead of the pack, considering the relatively minor costs of replicating a software product for an ever-growing market. However, that

What Is the Best Tech Bank for Financing Startups?

Embarking on the entrepreneurial journey – taking an idea and turning it into a growing business – takes guts. This long road to success is not as glamorous as the average person might assume. In fact, it’s often a rollercoaster ride filled with ups and downs, amidst a sea of stress and unknowns. And for the software-as-a-service (SaaS) entrepreneur seeking funding, all this gets compounded by the reality that most banks won’t fund SaaS companies. That’s because SaaS companie

An Intro to SaaS Sales: Sales Cycles, Commission Rates, Models, and Metrics

The most important thing you can do for your SaaS company when you’re starting out is to lay down solid foundations for success. This means not only having a thorough understanding of SaaS sales cycles, models, and metrics, but also knowing how to apply that knowledge in a manner that fosters a state of growth for your startup. It can be time-consuming and confusing – but having a detailed roadmap to follow can save a ton of headaches further down the track. You’ll never have

Lighter Capital Makes the Inc. 5000 List – Four Years in a Row!

For the fourth time, Lighter Capital has earned a spot on the Inc. 5000, coming in at 1,557 on the list. This ranking coincides with Lighter Capital hitting some critical milestones. To date, Lighter Capital has provided over $165MM in more than 600 rounds of financing to over 350 startups. Inc. Magazine has revealed that Lighter Capital is No. 1,557 on its annual Inc. 5000 list, the most prestigious ranking of the nation’s fastest-growing private companies. The list represen

Introducing New Entrepreneur-Friendly Startup Financing Solutions

The startup fundraising process is a journey. Whether your business is just starting to focus more heavily on the customer, or if the goal is to continue to grow along with new innovations, startups have diverse funding needs and deserve diverse funding options – especially in times of growth when capital is critical. Historically we have funded tech startups with revenue-based financing, providing over $150MM in more than 500 rounds of financing to over 300 startups. And tod

The First Ever Revenue-Based Financing Industry Report

At Lighter Capital we have provided over $155MM to startups through more than 550 rounds of revenue-based financing (RBF). In 2012, my first year at Lighter Capital, we funded 11 revenue-based financing deals. This year we expect to fund 200 deals. The growth has been spectacular. Long ago we established a goal of funding 500 deals; we thought that many deals would establish revenue-based financing as a standard funding option for startups. Having flown past our 500 deal goal

What Is Scaling in Business and How Is It Different Than Business Growth?

Two of entrepreneurs’ favorite topics are growth and scaling in business. The words are thrown around a lot, but the enthusiasm with which they’re used often outpaces the accuracy. Many people use these words to mean the same thing: A company getting bigger, gobbling up more market share, and making more money. But there’s a crucial difference between growth and scaling in business terms, and it’s an important distinction to understand what really happens when businesses grow

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