Lighter Capital, the leading fintech lender to tech startups, announced
today that it has financed over $150 Million in more than 500 rounds of
Revenue-Based Financing to over 300 startups. The company also announced
the release of its first ever Revenue-Based Financing industry report,
tracking its emergence as the leading form of alternative funding for
startups. Lighter Capital’s growth has accelerated quickly with this
entrepreneur-friendly funding model, providing 300 rounds of financing
in the past two years and capturing 72% of the Revenue-Based Financing
market.
The industry report, The
Rise of Revenue-Based Financing, details how Revenue-Based Financing
has grown in popularity in recent years. The non-dilutive funding
structure fits a wide array of startups, so long as they have revenue
that’s relatively consistent. Lighter Capital has funded companies that
have gone on to raise venture capital, including several with exists
well over $300M, as well as startups that are angel-backed and
bootstrapped.
“Revenue-Based Financing is popular with entrepreneurs because it
combines the best aspects of debt and equity,” said BJ Lackland, CEO of
Lighter Capital. “Like equity, there’s a deep alignment between the
investor and entrepreneur toward growth. However, the difference with
this funding model is the entrepreneur doesn’t give up control or
ownership in the same way they would to angels and VCs. This provides
entrepreneurs greater options as they continue to grow their businesses.”
Lighter Capital’s fintech platform pulls in 6,500 data points to analyze
startups quickly and reduce entrepreneurs’ time to raise funds by over
90%. The company uses proprietary algorithms to determine a credit
rating and data science to predict a startup’s revenue growth, with 97%
accuracy, on average. By using objective, data-driven practices, Lighter
Capital provides $50K-$3M in funding to a broad array of tech startups,
promoting diversity of ideas, perspectives and leaders — ensuring that
strong, creative thinkers have access to the resources they need, when
they need them.
Although Lighter Capital is the market leader in Revenue-Based
Financing, it plans to keep innovating with more financial products to
serve startups better and better.
About Lighter Capital
Lighter Capital is a fintech company revolutionizing startup finance by
offering a new funding path for early-stage tech companies. We
understand that an entrepreneur’s two greatest constraints are time and
money, and we’ve developed technology to fund companies quickly and
easily. We provide up to $3 million of non-dilutive growth capital in a
fraction of the time it takes to raise from traditional sources. Based
in Seattle, we’ve provided over 500 financings to 300 companies across
the US. More at www.lightercapital.com.
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