Lighter Capital

SEPTEMBER 28, 2023

In today’s increasingly competitive and uncertain markets, where only the strongest SaaS startups survive, EBITDA margins not only provide insight into a business’ operational health and profitability, but they also influence investor transactions and corresponding startup valuations. What is a good EBITDA margin percentage?

EBITDA 52

EBITDA Finance Start-ups Marketability 52

Lighter Capital

AUGUST 30, 2023

Gross profit margin (GPM) can tell you a lot about a SaaS startup's profitability and the efficiency of their operations. SaaS startups, however, often miscalculate their margins and their runways. Company A is a pure SaaS company offering a B2B turnkey solution through monthly/annual subscriptions.

B2B 52

B2B Accounting Firms Technology Marketability 52

Lighter Capital

FEBRUARY 18, 2023

Before we get up-close and personal with Gross Margin, how it’s calculated, and why you should care about it, we need to come clean about SaaS's dirty little accounting secret: it's not uncommon for SaaS companies to miscalculate Gross Margin (also known as Gross Profit Margin or GPM) and their Cost of Goods Sold (COGS).

B2B 52

B2B Start-ups Accounting Firms Technology 52

Brian DeChesare

JANUARY 24, 2024

Specifically, should we invest €60 million at a pre-money valuation of €1.2 billion and €50 million at a €800 million pre-money valuation if we’re targeting a 3.0x Specifically, should we invest €60 million at a pre-money valuation of €1.2 billion and €50 million at a €800 million pre-money valuation if we’re targeting a 3.0x

Equity 102

Equity Private Equity Firm Start-ups Comps 102

Lighter Capital

FEBRUARY 16, 2023

Saving customers millions of hours and dollars that would have been wasted on manual order processing, the B2B SaaS startup helped automate commerce operations resulting in 4.2 With Syncware you can stop wasting time and money, and start scaling. million orders of $1.1 billion of gross merchandise value.

B2B 52

B2B Start-ups Finance 52

Lighter Capital

MARCH 4, 2023

Start by Digging into Your Most Critical Growth Metrics If you’ve raised money, you’ve probably done a lot of talking about and a lot of analysis on metrics like customer lifetime value (CLV) and customer acquisition cost (CAC). Back to our hypothetical SaaS startup. Here's how to make sure you're at the top of your game.

Start-ups 52

Start-ups Marketability Finance 52

Lighter Capital

FEBRUARY 13, 2024

Traditional business loans from banks or SBA loans are often the cheapest non-dilutive capital options, but SaaS startups and other recurring revenue businesses don’t usually meet the requirements without hard assets or being profitable. It doesn’t matter whether you’re raising debt or equity capital; don’t take more money than you require.

Equity 52

Equity Finance Debt Financing Capital Structure 52

Brian DeChesare

MARCH 13, 2024

Others would counter that growth equity’s rapid ascent was mostly due to the easy money that persisted between 2008 and 2021. the Founders sell some shares to take money off the table, but “the company” doesn’t get any of that cash). Debt financing is much more common, and the GE firm is often the first institutional investor.

Equity 90

Equity Start-ups Marketability Banking 90

Lighter Capital

APRIL 4, 2024

AI startups racing to innovate and deploy new solutions across a broad range of industries and applications have dominated investors’ attention and money. Some reports, however, say the flow of money into artificial intelligence may be slowing , and newer AI startups are finding it harder to win over VCs. Seamless.AI

Finance 45

Finance Equity Start-ups Marketability 45

Lighter Capital

JULY 20, 2023

Debt financing is a method for raising capital in which a business or entrepreneur borrows money from a lender or bank, then repays it at a later date, with interest, according to the terms in the repayment agreement. GO DEEPER: Download Lighter Capital’s free guide to , Financing Your SaaS Startup Using Debt How does a revolving loan work?

Debt Financing 52

Debt Financing Finance Equity Equity Financing 52

Brian DeChesare

SEPTEMBER 20, 2023

As part of this, you’ll request due diligence data on users, customers, financial performance, clinical trial data for biotech companies, and SaaS metrics for enterprise software companies. Q: What’s the difference between pre-money and post-money valuations? Q: What are some key metrics and ratios for SaaS companies?

Start-ups 59

Start-ups Equity Marketability Terminal Value 59

Equidam

JULY 14, 2022

This is the most critical impact of downturns: Venture capital funds will have a more challenging time raising money to invest, which translates into less capital being available to founders. The first money that disappears as stock prices fall is that of corporate venture capital. The buy-side. Corporate venture capital.

Marketability 79

Marketability Start-ups Venture Capital Fund Alpha 79

Equidam

JUNE 8, 2023

Fierce competition for SaaS rounds, combined with outstanding returns for VCs, could free up capital for overlooked industries such as hardware, environmental projects, health and pharma.” It’s just that they now have even more ungodly amounts of money to play with, thanks to the dismal returns available elsewhere.

Start-ups 77

Start-ups Finance Equity Marketability 77

Lighter Capital

OCTOBER 15, 2021

With over 10 years of providing revenue-based financing to our clients, we’ve built an impressive portfolio network of SaaS businesses. In an effort to give more than money (and partner perks), we are prioritizing community. We take pride in helping our clients succeed. Lighter Capital Founder and CEO Summit 2021.

Finance 52

Finance 52

Brian DeChesare

JULY 12, 2023

They want a $2 million seed investment at a $20 million post-money valuation, meaning that we (the VCs) will own 10% if we invest. This 10% ownership will likely fall to 7%, 5%, or even 3% as the startup raises money in the Series A, B, and C rounds, which means even lower returns multiples. So, should we do the deal?

Banking 52

Banking Marketability Compliance Finance 52

Lighter Capital

AUGUST 17, 2023

How to Grow a SaaS Startup in a Capital Crunch Step 1: Manage existing cash flow Bootstrapped or venture-backed, nearly every tech startup must raise capital to grow. Startups should keep at least 18 to 24 months’ worth of cash on hand to cover expenses, but predicting when you’ll run out of money isn’t all that simple.

Banking 98

Banking Marketability Finance Equity 98

IBG Business

OCTOBER 28, 2022

PEGs accumulated a lot of capital to be invested, and there is still a huge capital overhang, with lots of money to be spent and more money than there are good businesses to buy. PEGs are attractive destinations for investor capital, as putting money into a PEG with professional operators will return 20%-30% on their money.

Start-ups 52

Start-ups Equity Marketability Banking 52

Lighter Capital

AUGUST 25, 2023

We’ve all read the headlines: SaaS Startup Raises $100M in Venture Capital to Disrupt Market with Its Innovative Solution It seems so common, but is it really? VC money always comes with a catch. So, don’t take VC money without evaluating your return on their investment. VCs need an exit.

Venture Capital Fund 92

Venture Capital Fund Equity Marketability Finance 92

FE International

DECEMBER 31, 2021

SaaS, AdSense, Subscription) across almost every niche. The model’s theoretical underpinning is based on the time value of money which stipulates that a dollar today is worth more than a dollar tomorrow. At FE International we value and broker the sale of internet businesses with a wide range of monetization strategies (e.g.

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Business Valuation Precedent Transaction Analysis Start-ups 52

Equidam

NOVEMBER 21, 2022

We need to understand that a company is a risky investment, and that – fundamentally – an investment is a sacrifice of money now for a greater amount of money in the future. So I make the financial projections based on that strategy, and when I’ve made enough money, I open the next.

Start-ups 57

Start-ups Marketability Alpha Finance 57

Lighter Capital

FEBRUARY 22, 2023

RELATED: How to Manage Your SaaS Startup’s Burn Rate The main take away here is to not approach setting up your accounting function as a DIY project! There are many great ways to save money while you’re bootstrapping your startup— cutting costs by doing your own accounting is not one of them.

Start-ups 52

Start-ups Banking Finance Compliance 52

Brian DeChesare

MARCH 9, 2022

and you summon Founders and CEOs who desperately need your money to grow their companies. Highly Skewed Performance – Remember that 65% of VC deals lose money , and only 4% of deals return more than 10x. 5 PM – 6 PM: You join a virtual conference sponsored by The Wall Street Journal to discuss recent trends in e-commerce and SaaS.

Finance 83

Finance Start-ups Equity Marketability 83

Brian DeChesare

DECEMBER 21, 2022

Unlike its competitors, Microsoft can afford to pour money into unprofitable ventures for years/decades, so most governments will be opposed to these huge deals. But Microsoft’s claim that it’s “#3” in games after Sony and Nintendo is also deceptive. Plans for Next Year. Finally, back to those questions that never go away….

Banking 80

Banking Start-ups Finance EBITDA 80

Lighter Capital

JULY 28, 2023

One of the key advantages to building a new SaaS business is the ability to launch a product, start generating revenue, and then scale up quickly — without a lot of overhead. Many SaaS startups gain early traction with only a few dedicated customers. Stability and long-term success, however, come from your customer base.

Start-ups 52

Start-ups Marketability 52

Lighter Capital

SEPTEMBER 9, 2023

For SaaS startups and startups with subscription-based pricing, one debt funding option in particular is often an ideal source of capital: revenue-based financing (RBF). Example: Raising Capital for Tech Startups Learn strategies and tactics for funding your SaaS startup. What’s the alternative? How does revenue-based financing work?

Finance 52

Finance Equity Start-ups Marketability 52

Audit Board

APRIL 10, 2022

If your organization has a cloud service offering (CSO) or is a SaaS company looking to partner with the federal government, the FedRAMP Marketplace will become your way to connect to new agencies and to demonstrate your compliance for a wider audience. Per FedRAMP Tailored LI-SaaS Requirements 3.0

Compliance 52

Compliance Start-ups Technology 52

Lighter Capital

SEPTEMBER 9, 2023

For SaaS startups and startups with subscription-based pricing, one debt funding option in particular is often an ideal source of capital: revenue-based financing (RBF). Our focus is mainly on SaaS and subscription-based tech startups in the U.S., What’s the alternative? Example How much funding can a startup get?

Finance 96

Finance Equity Start-ups Marketability 96

FE International

MARCH 14, 2018

To help prospective app-owners and creators attain a broad but thorough grasp of the industry and its many challenges and opportunities, we will answer the following questions: What is an app and how does it make money? Customers pay for access to the features of SaaS apps on a recurring basis, usually monthly. What Is an App?

Marketability 52

Marketability Start-ups EBITDA Business Valuation 52

Brian DeChesare

MAY 17, 2023

Four major trends caused PE interest in tech to skyrocket: The Shift to Subscription-Based Software (SaaS) – Software companies always had some recurring revenue from maintenance & support fees, but the switch to 100% subscriptions made revenue and cash flows far more predictable. A great example of this is Vista’s $2.6

Equity 64

Equity Technology Private Equity Firm Start-ups 64

Lighter Capital

JANUARY 10, 2023

Most commonly, businesses encounter covenants when borrowing money, in agreements detailing what's being promised in exchange for a loan. If a business runs into unexpected churn , spends money in the wrong place, or is struggling to collect payments from customers, the business could temporarily breach a covenant with a lender.

Debt Financing 52

Debt Financing Finance Banking Equity 52

Simply Treasury

JULY 12, 2021

When large IT solutions and best-of-breeds are less flexible because of SaaS/cloud-mode, fintechs may present the advantage of flexibility to adapt the solutions to your needs and not the opposite. The big money in financial services will likely come from the capacity of some Fintechs to solve giant needs and problems of companies.

Treasury 52

Treasury Finance Marketability Technology 52

Audit Board

JUNE 8, 2023

FINRA : Financial Industry Regulatory Authority A non-governmental organization, FINRA requires broker-dealers to address nineteen areas of compliance, including Anti-Money Laundering (AML) and Cybersecurity and technology governance. Who may need it? Brokerages; broker-dealers; similar financial organizations. Who may need it?

Compliance 52

Compliance Start-ups Technology Accounting Firms 52