Now that the company is public, Lightspeed CEO and co-founder Dax Dasilva is more energized than ever. What some would consider an end unto itself – going public, cashing in, and bringing on more governance to help run the company – Dasilva says is just a stepping stone for the company to become a global acquirer and power player.
Speaking with Tech Daily, Dasilva recounted the three phases of Lightspeedโs growth, from bootstrapped startup, to funded venture, and now to public company.
Lightspeed POS bootstrapped
โFor the first seven years, we bootstrapped the company,โ said Dasilva. โIt was a different type of software. It was serving the same customer – small business, retail, and restaurants – but it wasnโt cloud-based.โ
With no outside funds, Lightspeed was a classic bootstrapped company that lived or died by its revenues. For Dasilva, an environmental activist and proud member of the LGBTQ+ community, it meant he had the opportunity to build a diverse team from the start, something he notes is critical for any startup to succeed.
โFrom the beginning of the Lightspeed story, we have valued different kinds of viewpoints and perspectives,โ said Dasilva. โSo thatโs created a culture of true diversity and inclusion as more people were brought into the companyโฆ that enriched the company and the kinds of solutions the company comes up with.โ
After gaining traction and seeing where demand was headed, though, Dasilva realized that the market needed more. Ultimately, he saw the entire market heading towards cloud-based solutions, and he wanted Lightspeed to be at the forefront of that shift. To get there would require venture capital.
Venture-backed Lightspeed
In their history as a private company, Lightspeed raised over $300 million, said Dasilva, a time he describes as โhyper growthโ for the company.
โThat was the second seven years,โ said Dasilva. โIn that period, we went to an even greater level of growth. We also did a number of acquisitions that helped us be the player in cloud for complex small and medium sized businesses.โ
Becoming an acquirer was enticing to Dasilva and Lightspeed, since the market, according to Dasilva, was not cohesive at all.
โIn every single [country], thereโs a different competitor for retail and a different competitor for restaurants; itโs very fragmented,โ Dasilva said.
Acquisitions and growth were going well for the company, which pulled in $72 million in revenue in 2018, according to BetaKit reporting. However, the strategy was difficult to execute on a larger scale, since Dasilva said that many of their acquisitions involve some stock. As a private company, valuations were debatable at best, and disastrous to the deal at worst. The company needed to go public.
Public challenger Lightspeed
โThe next logical step for us to continue to execute on our strategy was to do a public offering,โ said Dasilva. โWe really felt that for our segment, thereโs no global leader or go-to brand. The legacy players never made it to the cloud.โ
Without cloud technology, Dasilva said that incumbent players could not serve the โmodern consumerโ since โthe way we shop, dine, and find physical businesses is completely changedโ.
Going public was not just about financing to acquire more companies and fuel growth, though. The company could have easily raised more private funds for that. Listing on the public markets was about transparency on valuation, so acquisitions could go more smoothly and acquired companies receiving stock have a clear understanding of the value they are getting.
At this point in the companyโs history, Dasilva is even happier that he prioritized diversity early on. The company continues to grow and acquire other companies around the world, and integrating them was made much easier by the fact that Lightspeed has a diverse team.
โDiversity really helped as we acquired companies,โ said Dasilva. โAs we acquire a company, theyโre going to be a whole new culture that we bring into the company. Thatโs new ways of communicating, new ways of reaching consensus, and new ways that we can learn and improve the way that we operate.โ
The other reason Dasilva is happy about being public, though, is far more Canadian in nature. The Montreal-based company is excited to be a global player, of course, but they are particularly excited that they did a listing solely on the Toronto Stock Exchange (TSX).
โIt was assumed that in order to get volume [on your IPO] youโd have to list on both the TSX and NASDAQ, or TSX and the New York Stock Exchange,โ said Dasilva. โThe Lightspeed IPO was TSX only and was successful. Thatโs proven to us, and to the ecosystem, that we can take companies public in this country alone.โ