How To Get App Funding For Your Project, It's Easier Than You Think
Wednesday, April 09, 2014
Seattle-based Lighter Capital fills the funding gap left by VC’s, angel investors and banks. Started by entrepreneurs who believed there was a better way to get tech businesses funded, Lighter Capital’s innovative RevenueLoanTM is designed specifically for tech based and app economy businesses.
With the emergence of the App Economy it’s time to make funds available that suit the emerging new business models. Envisiontel – a SaaS company focused on training apps for the Salesforce App Exchange recently received $150,000 from Lighter Capital to help them grow their team.
Said Envisiontel’s Founder and CEO, Matt Lee, “As a software vendor, we were in a unique financial position. We didn’t have capital assets like buildings or heavy machinery to leverage with traditional banks in order to acquire working capital and we weren’t quite ready to raise venture capital. We needed to add some headcount in order to grow but wanted to maintain control in order to fine-tune our business model. Lighter Capital offered a solution that was perfect for us.”
Lighter Capital has funded 45 technology, SaaS and App loans in the USA and is growing its footprint in Canada. Entrepreneurs like the flexibility the RevenueLoanTM affords them – repayments rise and fall with the business’s revenue ebb and flow, there are no personal guarantees, no board seats and no bank-like financial covenants.
Furthermore, Lighter Capital frequently makes multiple loans to the same company, expanding the capital availability with the growth of the business. What many also like is that it’s not equity – so entrepreneurs and early investors don’t suffer dilution and loss of control. Said Lee, “By paying back our loan as a percentage of monthly revenue, their model gave us the capital we needed with the control and flexibility we desired.”
This content is made possible by a guest author, or sponsor; it is not written by and does not necessarily reflect the views of App Developer Magazine's editorial staff.
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