What's your big idea for 2015? For entrepreneurs, the beginning of a new year often involves a lot of planning for the next phase of your company's growth. Whatever your growth plan may be, taking your company to the next level requires investment, and investment generally means outside funding. Join our upcoming webinar with Lighter Capital CEO BJ Lackland to learn about revenue based financing. Our funding is entrepreneur-friendly and will: Get you access to capital fast Not require any personal guarantees Not dilute your equity With Lighter Capital, you can get funded for 2015. Spend next year growing your business, not looking for ways to fund it!

1. Get funded for 2015
Revenue-Based Financing
December 11, 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.
› Completed >60 deals: Most
active revenue-based finance
lender in the country
LIGHTER CAPITAL WEBINAR © COPYRIGHT 2014

3. About BJ Lackland
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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
The funding landscape
Choosing your funding path
Revenue-based financing – how it works
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5. Big Themes Affecting the Funding Landscape
Falling cost of
innovation
Shifting VC
landscape
More funding
sources
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• More startups
• More capital
• Growth of Seed Rounds
• Series A the New B
• Rise of corporate VC
• Debt
• Crowdfunding/Angellist

6. 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 decisions are hard to
reverse
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7. 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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8. › 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?
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Know Your Goals

9. Choosing the right funding path
Angels
/Incubators/Crowdfund
ing
VC backed
path
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Angels
/Incubators/Crowdfund
ing
Non VC
path
Seed/Series A VC
Traditional Banks
Revenue$
5m
Revenue-Based
Financing
Series B VC
Corporate Venture
Established
Breakout
Growth &
Scale
Launch &
Traction
Ideation
Bootstrap/Family &
Friends
Bootstrap/Family &
Friends
Tech Banks
Series C VC
Equity
Debt
Tech Banks

10. Revenue-Based Financing
What is it and how it works
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11. How a 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

12. 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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13. Bank / Debt
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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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The Best of Equity and Debt

14. 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
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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

15. 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 27% of companies that meet our criteria

16. Client Case Study- Cloudbilt and Valant
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› A SaaS company on the Salesforce
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

17. 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