Alternative Funding Sources Available to Startups; Customer Service as a Key Differentiator; How to be Capital Efficient in a Tight Market with Melissa Widner, CEO Lighter Capital
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🍵 THIS WEEK'S TEA
Bing is having a hot girl season and it looks like it's gonna last. Microsoft 10X'd the price of Bing's search API, and unlike Google which just lost $100B after rushing Bard to market, Microsoft can innovate because they don't rely on an ad model to thrive. ChaptGPT is a direct threat to the revenue models of search engines and news-based businesses that rely on ads. Think about it - if ChaptGPT summarizes everything, are you really going to pay for gated content or waste time going through search where the 1st page is basically 50% ads anyway? And ain't nobody looking through the 1 Billion search results Google offers up. Bing's new hot girl, Sydney, is supposedly Bing's "unhinged" side-chick but the crazy ones are who we typically desire - admit it. It's a reminder that tech is a product of the people behind it. OpenAI promises to fix the biases. Usually, I wouldn't hold my breath but the mastermind CTO behind ChatGPT is a QUEEN so I actually have hope.
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👑 Founder: Melissa Widner | Company: Lighter Capital | Location: Sydney, Australia
🧾 Receipts: Melissa has led two companies to successful exits returning over a 10x return to her investors. She is now the CEO of Lighter Capital, the pioneer and leader in revenue based financing for tech start ups and scales ups and co-founder and Chairperson of Sydney based Heads Over Heels.
💸 HERE'S YOUR TRACTION BRIEFING
Revenue-Based Financing As An Alternative Funding Source
Retain Your Equity & Control - "One of the nice things we’re doing at Lighter Capital is allowing companies to grow without giving up any equity or control so when that exit does happen they are getting 100% of it or close to 100% of it." - Melissa Widner. Revenue-based financing (RBF) is a flexible alternative that provides startups with capital without giving up equity or control of the company. RBF also allows companies to avoid the dilution of ownership that comes with equity financing, and investors are motivated to help the business grow and succeed since they are invested in the company's revenue. HERE is Melissa's take on alternative funding sources.
🛠️ MORE TOOLS TO GET IT DONE: Learn how revenue-based financing works HERE.
🤗 JOIN THE COMMUNITY: Ready to grow your revenues consistently? Want access to the right people & expand your network? Tired of going at it alone? Join our community membership waitlist here.
How Founders Can Stay Afloat In The Current Market
Be Capital Efficient - We all know that the current market is tough. Funding sources are scarce, and cash is in short supply. Capital efficiency is about maximizing the value of your resources and minimizing unnecessary expenses. By being capital efficient, startups can stay lean and agile, adapting quickly to changing market conditions. This allows them to make strategic investments in areas that will generate the most return. HERE are more insights into how businesses can survive the current market.
🛠️ MORE TOOLS TO GET IT DONE: Learn how to create a capital efficient startup HERE.
Why Customer Service Is Your Business's Key Differentiator
Creates Brand Loyalty - "Customer service and customer relationship really is a competitive barrier to entry." - Melissa Widner. How often do you hear "Thank you for your great service" from your customers? If the answer is "not enough", then it's time to up your customer service game. Sure, having a great product or service is important, but it's not enough to differentiate your startup from competitors. In today's competitive landscape, excellent customer service is the key to creating a loyal customer base. HERE is how Melissa used quality service to differentiate her businesses.
🛠️ MORE TOOLS TO GET IT DONE:Learn how to know which funding options are right for you HERE.
Elizabeth Carter ESQ walks you through alternative funding structures that you can tap into.
Learn how to scale by mastering different growth channels in the Traction Library.
🤗 BECOME A MEMBER: Ready to grow you? Join a powerful, hyper-connected, and supportive network helping you grow your business, reduce overwhelm, and teaching you how to hit goals consistently. Explore our membership HERE.
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With Love & Impact,
Alex Batdorf
Chief Get Sh!t Done Officer