Ronzio: Fast-growing SaaS gets no more from Lighter Capital than credit cards
Chris Ronzio · 1245 He Used These 3 Channels To Hit $50k in MRR in 7 Months · Dec 21, 2018 · at 14:14
Trainual founder Chris Ronzio explains why revenue-based financing from Lighter Capital was impractical for his early-stage startup given its rapid month-over-month growth.
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“They'll only give you a three or four times what your MRR is. And when you're growing at such an early stage like this, they look backwards. So they look at your last three months of our MRR and with how much we've been growing, you know, 30, 40% month over month those numbers aren't that impressive. So the cash that I could get from them is similar to the cash I can get through, through a couple of credit cards.”
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