Ep 378 How to Keep More Equity by Getting Customers to Fund Your Growth with Premonition Founder, Brad Lorge - ARR vs. ACV, finding strategic acquirers, negotiation tips, fast-tracking an acquisition, considerations when rolling equity.
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Show Notes
In 2015, Brad Lorge founded Premonition, a technology company that offers logistics software to streamline a company's delivery operations. Rather than the traditional approach of financing their start-up through rounds of dilutive funding, Lorge asked his customers to pre-pay, allowing the founding team to retain 80% of the equity in their business.
By March 2022, Premonition had grown to $3 million in Annual Contract Value (ACV) which is when it was acquired by Shippit for $20.5 million -- an implied valuation of just under 7 times ACV.