This document discusses revenue-based financing as an alternative to venture capital for ISVs seeking funding. It outlines how revenue-based financing works by providing monthly payments to the company as a fixed percentage of its monthly revenue, with no equity stake required. The document notes that revenue-based financing is well-suited for SaaS companies and can provide funding up to $1 million or 33% of a company's annualized revenue run rate. It also shares an example of a $500,000 revenue-based financing with monthly payments of 5% of revenue and a 1.7x repayment over 5 years.

1. Beyond VC: Capital Raising for
ISVs Without Giving Up Equity
How to fund your growth without losing control
​ BJ Lackland
​ CEO, Lighter Capital
​ @bjlackland
​ John Stewart
​ CEO, Cloudbilt
​ @CloudbiltApps

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3. • The funding landscape – why is it so hard?
• What options are available – Cloudbilt’s experience
• Revenue-based financing – why it works for ISV’s
Today’s Agenda

4. 52%
25%
21% SaaS
SaaS + Service
Tech-enabled services
Digital Media
• 100+ financings across 70+ companies
• Almost 80% are SaaS
• Revenue Based Financing for tech companies
• $50k-$1mm per company
• Technology + Capital = Better for Entrepreneurs

5. 5
• Apps that empower people to move from Insight to
Action
• Cloudbilt’s MapAnything™ is a native solution that is
part of the Salesforce1 Ready Collection
• Grew AppExchange Product Revenue 4600% from
December 2012 (First Funding) till now.
• 27,000+ User Subscriptions over 500+ Customers
• #227 500 fastest growing US companies
• #15 in the software industry
​ Funding Story
• 5 rounds totaling $1M, starting in November 2012
• Only outside money raised
• The entrepreneur still owns the majority of the
company

6. The funding landscape for ISV’s - why is it so hard?
Cost of Entry
Speed of
Innovation
More Startups
Angels/VC
Larger Funds
Series A is
The New B
Other Sources
Corporate
Venture
Debt + Crowd
funding

7. Funding paths for ISV’s
Revenue$5m
Established
Ideation
Launch & Traction
Growth & Scale
Breakout
Debt
Equity
Bootstrap / Friends & Family
Incubator / Angels
VC Backed Non VC Blended

8. • The best of debt and equity – aligned interests with no dilution
• Essentially a royalty agreement
• Monthly payments = fixed % of revenue
• Fits SaaS
p8
What is Revenue-based financing?
1 2 3 4 5 6 7 8 9 10 11 12 13 14Period
Company revenue
Loan payment
Example Financing
• Up to $1M or 33% of annualized revenue run
rate
• $500K funding
• Payment: 5% of monthly revenue
• Repayment: 1.7x principal ($850K)
• Maturity: 5 years

9. ​ ISV’s looking to grow:
Investment Criteria
​ 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
​ Management:
• High ownership, full time dedication
​ Geography:
• HQ in US
p9
• Sales and marketing initiatives e.g
Dreamforce!
• Hiring new people
• Product development
• Transitioning from services to product

10. ​ Branden Harper, North East
bharper@lightercapital.com
​ Jonathan Gagliardoni, East
jgagliardoni@lightercapital.com
​ Jon Prentice , California
jprentice@lightercapital.com
​ Rebecca Conner, West
rconner@lightercapital.com
​ Apply Online
www.lightercapital.com/apply
​ Funding Calculator
www.lightercapital.com/how-it-
works/see-if-you-qualify
​ Funding Blog
https://
www.lightercapital.com/blog/
​ Online
www.cloudbilt.com
​ @Dreamforce
• Cloud Expo West W827 & W124
• Cloud Expo North N1028 &
N2009
Meet our Investment Team in
the Partner Zone
Lighter Capital Resources Cloudbilt
Q&A

11. Thank you