Numeracle calls in a VC alternative to fund rapid growth
Instead of ceding 10% of the company to prospective VCs, Numeracle’s leaders discovered non-dilutive financing and what that equity stake would have cost them — it was millions.
2
Rounds:
$1.5 million
Non-dilutive financing:
Use of funds:
Make strategic hires
Invest in sales and marketing
Invest in new product development & support
Lighter Capital Funding
Grew ARR 3X in 1 year
Zero equity dilution
Preserved $3 million in ownership value
Growth & Achievements
More on
Numeracle
About
Numeracle
Founded in 2017 by CEO Rebekah Johnson, Numeracle’s software helps businesses connect and earn trust with every phone call, providing brand and reputation management, identity verification, and call compliance solutions that strengthen customer communications and relationships.
“I was looking for non-dilutive funding options so my partners could retain as much equity as possible and still get a lot of the same benefits that they’d get from a traditional VC partner. I discovered Lighter Capital, who has a very similar community of portfolio companies just like the VCs that I’ve worked with. I couldn’t be more happy about our partnership with Lighter Capital. It’s truly a win-win situation.”
Scott Sehon
CFO at Numeracle
Quick Stats
Stage:
Growth
Industry:
SaaS, Telecomm
Headquarters:
Washington, D.C.
Founded:
2017
If no one has pestered you lately about extending your car’s warranty, thank the Federal Communications Commission (FCC), which has cracked down on intrusive robocalls and texts, as well as phone scams and fraud.
There’s a downside, though. While clearly a win for consumers, the FCC’s aggressive actions have had unintended consequences for legitimate businesses, significantly reducing contact rates for legal calls to customers and subscribers.
Rebekah Johnson founded Numeracle in 2017 to help businesses keep compliant with changing FCC rules and establish trust before consumers even answer the phone. Numeracle’s intuitive online platform offers businesses, call centers, and voice service providers a one-stop shop for managing and controlling their call identity.
By 2022, the startup had reached $1.5 million in annual recurring revenue (ARR) and needed capital to spur its expansion. Numeracle CFO Scott Sehon shares the company’s incredible growth story and how Lighter Capital became a valuable partner in its success.
A non-dilutive solution
Sehon was looking for $1 million in funding, but Numeracle’s potential VC partners wanted almost 10% of the company for that investment. Fortunately, Sehon found a better way to raise $1 million — without selling equity.
“I was looking for non-dilutive funding options so my partners could retain as much equity as possible and still get a lot of the same benefits that they’d get from a traditional VC partner,” Sehon says. “I discovered Lighter Capital, who has a very similar community of portfolio companies just like the VCs that I’ve worked with.”
The real cost of selling equity
Numeracle raised $1 million in non-dilutive growth capital from Lighter Capital. By the end of the year, the business had grown to $5 million ARR.
If Numeracle had gone the well-trodden VC route, “we would have paid $3 million in equity for that $1 million,” Sehon says. “That’s really what it would have cost us, compared to the incredibly reasonable terms we got with Lighter Capital for the same investment.”
Ready to kick off a new year with the runway to maintain its momentum, Numeracle just raised another $500,000 round of non-dilutive funding from Lighter Capital.
“I couldn’t be more happy about our partnership with Lighter Capital,” Sehon says. “It’s truly a win-win situation.”
