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

Venture capital funding is to tech startups what the Wizard of Oz is to Dorothy — a longed-for solution to a central problem, imbued with a sense of power and even magic. Many startup founders see snagging VC funding as a major goal. But many end up finding that VCs are too often what Dorothy discovers the Wizard to be: a chimera — extremely difficult to access and possessed of some major drawbacks. Here are six reasons that getting VC funding isn’t always the most constructi

While seed funding is more abundant than ever (the number of seed-funded companies has quadrupled in the last four years), Series A funding is actually harder to get than it used to be. With a super-abundance of competent seed-funded companies, investors can afford to get choosy about their Series A bets. Many companies want to raise their Series A round before they’re ready, but coming unprepared to such a competitive space can be detrimental to your company’s future funding

In the very early stages of your company, you need to make a key decision: What type of business entity to form. Will you be an LLC (a limited liability company), an S Corporation, or a C Corporation? Your choice will have an immediate impact on your company, as well as lasting implications for your ability to raise funds, especially if you decide to pursue venture capital. If there’s any possibility you’d try to raise VC money at some point, the choice is rather easy: It’s w