Lighter Capital's CEO explains revenue-based financing for SaaS companies. Instead of equity, you repay a fixed percentage of monthly revenue until the loan is done. It works as a bridge before raising venture capital.
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So I'm the CEO of Lighter Capital. We are the pioneer and leader in non-dilutive funding, revenue-based funding for SaaS companies. It's primarily B2B SaaS, but really any company that has some form of recurring revenue. And we are an alternative source of funding for companies that are looking for growth capital. So it's a pretty friendly form of financing. We essentially provide capital to companies in the form of debt. And the payback is based on a percentage of revenue until the loan is paid back. So it's a way for companies to get traction without taking dilution. And a lot of times it's a path that companies choose before they go on to get that larger venture capital round.