Announcements, Business, Finance
Lighter Capital and Ideas2IT partner to jumpstart the growth of promising SaaS Startups
The Lighter Capital and Ideas2IT partnership will provide SaaS startups with a potent combination of zero equity capital and Silicon Valley-grade product development expertise.
Since the mid-90s, the venture capital community has convinced entrepreneurs that raising venture capital is fundamental for their startups. While VC funds have helped create large and valuable companies, they have their downsides too. Most startup entrepreneurs find themselves giving away substantial portions of their company in exchange for the capital. And these portions get bigger and bigger with every round of funding. Many times, equity funding also leads to mission-drift due to pressure from investors.
In scenarios like this is where Lighter Capital, Inc. is a boon to entrepreneurs. The finance company provides startups up to $3M capital, with no dilution. Described by TechCrunch as an “alt-VC,” Lighter Capital is best known for its revenue-based financing, in which expanding companies repay borrowed funds from future receipts. SaaS and other tech startups are often considered ideal candidates for alt-VC.
Ideas2IT Technologies, with its product development expertise, has helped numerous entrepreneurs in North America and Europe scale-up their ventures and make successful exits. Software engineering is one of the biggest expenses of a SaaS startup and in many cases, software engineering expenses could amount to 50% of a startup’s expenses. With Ideas2IT, startup founders will now get an extended software development team that delivers silicon-valley quality engineering and creativity, at about one-third the cost. Ideas2IT has helped multiple SaaS companies and over 50 startups in the last 11 years.
Speaking of the partnership with Ideas2IT, Lighter Capital’s CEO Thor Culverhouse said, “Lighter Capital can accurately determine a startup’s revenue. But we foresee instances where Ideas2IT could help us better understand the product-market fit of a startup’s idea. They are better positioned to advise on the technologies that could be leveraged to make a product scalable. By enhancing our customers’ chances of success, Ideas2IT helps us exercise greater control of the outcome.”
“Our product development experience and expertise with various technologies like AI-ML, Cloud, IIoT, Blockchain, etc., puts us in a vantage position to help Lighter’s customers. With strategic nearshoring, we could help these entrepreneurs go-to-market very fast. While keeping their product development costs low and extending their startup runway,” said Murali Vivekanandan, Founder and CEO, Ideas2IT Technologies.
At a critical time period when 92% of SaaS companies fail within 3 years – the combination of Lighter Capital’s non-equity funding and Ideas2IT’s technology expertise should help a considerable number of promising startups make their mark in the booming SaaS industry.
About Lighter Capital
Lighter Capital (www.lightercapital.com) has revolutionized startup financing by making it easy for entrepreneurs to quickly access up to $3 million in growth capital and working capital with zero dilution and full control. Lighter Capital offers a mix of entrepreneur-friendly product offerings—including revenue-based financing and term loans — to empower early-stage tech startups with the flexibility they need to fund the business at different stages of growth. Lighter Capital has provided over $200 Million to hundreds of startups in over 700 rounds of financing, including MapAnything, Jive, Quip, and more.
Founded in Silicon Valley in 2009, Ideas2IT today works with innovators at SaaS startups and several global enterprises like Facebook, Roche, and Medtronic Labs. Ideas2IT offers an unparalleled blend of technical expertise and creativity, to transform bold new ideas into reality. With deep experience in bleeding-edge technologies like AI-ML, Cloud, IIoT, Blockchain, and more; Ideas2IT is well known for its ability to deliver scalable, high-quality products, consistently. Know more at www.ideas2it.com.