Get Your Growth Capital Beyond VCs, Angels and Banks. In this webinar, BJ Lackland, CEO at Lighter Capital explains why revenue-based financing is a better funding option for growing companies. Watch and learn: -What's Revenue Based Financing -Who It's Designed For and How to Decide if it's For You -How Does It Compares to Other Funding Options like Angels, VCs, and Banks

1. Discover a New Funding Option
Revenue-Based Financing
October 23, 2014
LIGHTER CAPITAL WEBINAR © COPYRIGHT 2014

2. About Lighter Capital
› Lends $50K-$1M in growth capital
› Entrepreneur-friendly structure we
call a RevenueLoan (revenue-based
finance)
› Goal: make funding fast and easy.
Tech-enabled analysis, diligence,
underwriting and servicing.
› Currently 3-4 deals / month
› Completed >50 deals: Most active
revenue-based finance lender in
the country
LIGHTER CAPITAL WEBINAR © COPYRIGHT 2014
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3. About BJ Lackland
LIGHTER CAPITAL WEBINAR © COPYRIGHT 2014
Lighter Capital, CEO since 2012
Power Efficiency Corporation, CFO & Director
Public energy technology company, raised $20M in
equity financing, $5M in various debt financings
Summit Energy Ventures, VP & Director (Partner)
$25M venture capital fund focused on Series A & B
rounds, PIPEs, convertible debt
Other, Active angel investor and consultant to early
stage companies. Senior finance and marketing
leader at tech startups, EnCompass Globalization
and webStrategic.
MBA and MA in International Studies from University
of Washington
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BJ Lackland
CEO,
Lighter Capital
15 years financing early
stage tech companies,
either as an
entrepreneur or investor.
Over $50M raised or
invested

4. Today’s Agenda
What is revenue based financing
Who it's designed for
How it compares to other funding options:
banks, angels, and VCs
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5. Revenue-Based Financing
What is it and how it works
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6. How RevenueLoanWorks
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Up to $1M or up to 33% of annualized revenue run rate
› No set interest rate, payment, or maturity
› Monthly payments are a fixed percent of revenue
› Matures in 5 years or when cumulative payments equal a set
amount, usually 1.5 – 2.5x principal
› Small upside participation
Example Loan
› Annual Revenues: $1M
› Principal: $200K
› Maturity: 5 years
› Payment: 5% of monthly revenue
› Repayment: 1.75x principal ($350K)
› Upside Participation: $50K at liquidity event
Cumulative Payments
Principal
Loan
Maturity
1.5x
to
2.5x
Principal

7. Payments Based on a Percent of the
Company’s Revenue
Company revenue
Loan payment
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Period
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8. › No financial covenants – Payments depend only on
company performance.
› No loss of control – No board seat, no ability to replace
management.
› No personal guarantees – Secured only against the
assets of the company.
› Aligned interest – Our IRR depends on your performance.
› Advice – We’re here to help however we can. “VC-Light”.
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The Best of Equity and Debt

9. Lighter Capital’s Investment Criteria
Early growth stage technology companies
Financials:
› Revenue Min: $15k+ / month
› Gross Margin: High (50%+)
› Profitability: Not required, but
clear path to profitability from our funds
› Other Debt: Not too high (unless
convertible debt)
› Customer Base: No major concentration
› Recurring Revenue or Repeat Customers
LIGHTER CAPITAL WEBINAR © COPYRIGHT 2014
Management:
› High ownership, full time dedication
Geography:
› HQ in US or Canada
Use of Funds:
› Growth: Sales, marketing, product
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Software, SaaS, digital media, tech services and similar

10. Fast Process- Get Funded in a Month!
STEP 1 STEP 2 STEP 3
Company
snapshot
Create a high level
company overview online
in 10 minutes.
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Getting
the details
We will send you a link
to upload and provide financial
statements, customer and
team information followed by
one or two calls with our
underwriting team.
Closing
the deal
We issue a Term Sheet
for review. Once agreed,
you are funded
Result: We fund 18% of companies that meet our criteria

11. Client Case Study- Cloudbilt and Valant
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› A SaaS company on the Saleforce platform
› Bootstrap- the only outside money raised
› 4 rounds of funding, totaling $1M
› Recently named #227 on Inc. 500 fastest
growing private companies, and #15 in the
software industry
› Grew 1,995% between 2010-2013
› A SaaS solution for mental health
professionals
› Used $250K for product development,
sales & marketing
› Recently raised a $11M equity round
› Monthly revenue grew >10X

12. Revenue-Based Financing
How to decide if it's for you and
how does it compare
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13. World of Funding: Competition is Intense
Source: US Census Bureau, Crunchbase, CB Insights
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~6 Million US Business
90% of whom have
20 or fewer employees
127,100 small software companies
2,283 Angel and Seed Investments
Seed / Angel = 1.8%
of small software companies per year
1,009 Series A Investments
Series A = 0.8%
of small software companies per year
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14. What Will You Be When You Grow Up?
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› Different ‘financing roadmaps’
available, depending on the business
› Know your business
› Know your goals
› Choose wisely
› Choose a financing path that’s
available. Dead ends waste time
› Financing financing decisions are
hard to reverse
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15. Know Your Business
Stage & Capital
› What is the current company stage? What is the next stage?
› How much capital do you need to get to the next stage?
› Existing investors needs?
Sales & Marketing
› Nailed the target customer?
› How big is your target market? Larger than $1B?
› Ready for scale?
› Product-Market fit? Nailed customer acquisition cost, LTV, churn?
› Nailed revenue / pricing model?
› What does your sales pipeline look like? How long is sales cycle?
Team
› Is your team capable of going to the next stage?
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16. Know Your Goals
› Long term – Do you want to exit? When? Never?
› Control – Who do you want as partners? Who controls big
decisions? How is shared control structured?
› Equity – What are you willing to give up?
› Timeframe – How long will raising funds take?
Distraction?
› Risk – What are you willing to risk? Will own money?
Personal assets?
› Flexibility – How do you want to repay the money?
› Mentoring – Do you want lots or little guidance?
› Aligned interest – Can you align investors’ goals with
yours? p16
LIGHTER CAPITAL WEBINAR © COPYRIGHT 2014

17. A Snapshot of Funding Options by Stage
Strategic Investors
Ideation Launch & Established
Traction
$0 $0-$1M $1M-$5M $5M+ $MMs
LIGHTER CAPITAL WEBINAR © COPYRIGHT 2014
Growth &
Scale
Breakout
Bootstrap/Self
Family & Friends
Angels and Incubators
Revenue-Based Financing
VC (less pre-product/revenue than in the past, more at later stages)
Banks (w/o VC or PG)
Note: These are tendencies, NOT hard and fast rules. Many financings happen outside these bands!
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18. Summary: How Do They Compare?
Bank / Debt
LIGHTER CAPITAL WEBINAR © COPYRIGHT 2014
Revenue-Based
Finance
Venture
Capital
Guarantees &
Controls
Financial Covenants
Sometimes Personal
Guarantees
No Financial Covenants
No Personal Guarantees
Partner in the Business
(Board Seat, voting
shareholder)
Added Value Low / None Medium High
Dilution None / Low
Low: Small Upside
Participation
High
Payment
Flexibility
Low:
Fixed Payments
Medium:
Variable Payments
High:
No Payments
Speed 4-8 months 4 weeks
Highly variable. Typical
3-6 months focused
effort
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19. Want to Learn More?
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Visit Our Website
www.lightercapital.com
Apply Online
www.lightercapital.com/apply
See If You Qualify
www.lightercapital.com/how-it-works/see-if-you-qualify