“We were used to bootstrapping, and I liked that this type of financing would allow us to bootstrap our way out of any difficulty. Lischner also appreciated the availability of follow-on rounds. Your payment goes up or down depending on how much cash you are bringing in, which makes it a lower risk than traditional debt.” “Back then, our cash flow was more choppy and unpredictable, and I liked that the amount you pay Lighter Capital each month scales with your success. “In late 2010, we had close to $1 million in revenues,” Lischner says. Revenue-based financing turned out to be a natural fit with Valant’s growth strategy. They settled on a mix of debt and VC funding that would help them take their suddenly expanding market. Now they needed capital to build out their engineering capacity, certify their product, and invest in marketing and sales in order to earn a greater market share. Lischner had founded Valant in 2005 to help streamline healthcare paperwork and provide a platform that would allow caregivers to focus less on red tape and more on patient care. “The market was going to move faster,” Lischner says, “and we wanted to make sure we could stay ahead and grow with the market-or ahead of it.” When President Obama’s 2009 economic stimulus bill set aside $19 billion for healthcare technology and electronic health records, David Lischner, CEO of Valant Medical Solutions, saw an opportunity. Looking for competitive advantage in a growing market
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