How they describe themselves: We founded Lighter Capital to give small businesses a better funding option. As entrepreneurs ourselves, we felt it was time for some serious change in the financial services industry. So, what are we doing differently? We’re combining an innovative financial structure with a technology-enabled lending process, and capping it all off with a more open and avant-garde approach to small business lending.
How they describe their product/innovation: RevenueLoan™ is our light-weight and flexible financing option that fits an unmet need in the small business funding market. Our revenue-based finance model exchanges growth capital for a fixed percentage of a company’s revenues. Entrepreneurs prefer this as there’s no dilution, no loss of control, and no fixed repayment schedule. For us, this provides a more scalable funding strategy as we have more consistent repayment than venture investors while achieving higher rates of returns than banks. We’re also the first small business lender to build a company’s social media and web presence directly into our loan evaluation process.