Lighter Capital offers pre-negotiated buyout discounts for startups raising equity rounds
BJ Lackland · 658: Startups, $120 Million Up For Grabs! As Close to "Free Money" as You Can Get. · May 13, 2017 · at 12:45
BJ Lackland, CEO of Lighter Capital, discusses how revenue-based financing terms adjust if a portfolio company raises an institutional venture round.
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“If you want to pay us off early, like if you go raise an equity round, you want to pay us off early. And usually that means in 12 months or 18 months after we funded them, you pay us a lesser total amount. So it might be like a 125 K or something like that. And it's pre-negotiated when we fund the company. They can pay us a lesser amount. And in that one instance, we'll actually sometimes take a little slice of equity. In that case, it'd probably be like five grand worth of equity or something like that. But we basically let them, they have the option of just continuing to pay us as they plan or to pay us off early and pay us a lesser amount.”
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