Lighter Capital, the leading fintech lender to tech startups, announced
today that it has launched new
financing products to better match the capital needs of growing
startups. To date, Lighter Capital has provided over $150 million in
more than 500 rounds of financing to over 300 startups. The company has
historically provided Revenue-Based Financing and has now broadened its
portfolio to include lines of credit and term loans, designed to provide
startups capital over time as they need it. Unlike most venture debt,
startups do not need to have raised Venture Capital to qualify for
funding.
“Startups have diverse funding needs and deserve diverse funding options
– especially in times of growth when capital is critical,” said BJ
Lackland, CEO of Lighter Capital. “Startups typically need to raise
millions of dollars from VCs to qualify for loans and lines of credit.
By leveraging our fintech lending platform, we can now provide
bootstrapped and angel-backed companies with a full suite of funding
options. As startups grow their financing needs change. Our goal is to
provide up to $3 million per company through a mix of financing
structures and amounts, matching a startup’s changing needs. No one else
does this for startups that haven’t raised VC.”
Lighter Capital’s two new products complement the company’s historical
Revenue-Based Financing product. These can be combined for a total of $3
million in funding:
1. Lighter Line of Credit – Startups have fluctuations in capital needs,
to make essential payments like payroll or wait for a big customer
payment. The Lighter Line of Credit is a revolving working capital line.
It enables startups to draw and return capital numerous times, to even
out their cash needs.
2. Lighter Term Loan – Provides startups growth capital in a traditional
structure with predictable payments. Lighter Capital will also make
forward commitments, giving startups the right to get additional capital
for a period of time. For example, a startup could get a $500,000 loan
today and a commitment from Lighter Capital to provide an additional
$500,000 over the following six months.
The company recently released the first-ever Revenue-Based
Financing industry report which details how Revenue-Based Financing
has become the most popular form of alternative startup financing in
recent years. 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. This financing structure keeps an entrepreneur’s options open –
with many going on to raise venture capital, including several with
exists well over $300 million, and others intentionally remaining
angel-backed or bootstrapped.
Lighter Capital’s fintech lending 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 up to $3MM 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.
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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