Startup financing company Lighter Capital is broadening its horizons this week. The Seattle-based company announced it is now offering a more diverse set of financing options to fuel entrepreneurs with working capital.
Now, in addition to its flagship, revenue-based financing option that has provided $150 million to over 300 startups in more than 500 rounds of financing, Lighter Capital offers lines of credit and term loans. Similar to the revenue-based financing option, the Lighter Line of Credit and Lighter Term Loan are non-dilutive, meaning startups don’t have to give up equity, or offer board seats.
“Evaluating small startups and providing small loans requires a sophisticated technology platform and data science,” Lighter Capital CEO BJ Lackland told GeekWire. “Our fintech lending platform pulls in 6,500 data points through APIs, creates projections that are 97 percent accurate on average, and automates much of the funding process.”
The new offerings are called the Lighter Line of Credit and the Lighter Term Loan. The Lighter Line of Credit is a revolving working capital line that enables startups to draw and return capital numerous times to even out their cash needs. The Lighter Term Loan provides startups growth capital with predictable payments and offers them the right to get additional capital for a period of time.
The two new credit offerings are meant to complement revenue-based financing. Startups can combine all options for a total of $3 million.
Founded in 2010, Lighter Capital most recently demoed at FinovateFall 2013 where it showcased loan analysis and monitoring tools. Last year, the company launched a new Client Perks Program and increased its funding limit to $3 million.
Revenue-based small business financing startup Lighter Capitalannounced today it has increased its funding limit by 50%.
The Washington-based company will now provide tech startups with up to $3 million in working capital in exchange for 2% to 8% of their business’ future revenue. The $3 million cap is up from Lighter Capital’s previous funding limit of $2 million. Unlike with VC funding, startups retain full ownership of their company.
“As more and more tech entrepreneurs discover alternatives to equity-based venture funding, we realized the need for even more significant financial commitment,” BJ Lackland, CEO of Lighter Capital said. “The reality is, most banks won’t fund small, early-stage tech startups, and venture capitalists demand significant equity in the company. By increasing our loan amounts by 50 percent, we can ensure burgeoning tech startups can rapidly expand and get ahead of competition.”
Founded in 2010, Lighter Capital has funded more than 270 early stage tech startups in 450 funding installments totaling $125 million. The company today announced it has provided an additional $555,000 in funding to proptech company ListReports. Thanks to the more than $2 million in total financing from Lighter Capital, ListReports has increased its revenue by 11x since Lighter Capital first began investing in it in 2016, Regarding the round, Lackland said, “Since day one, ListReports has been on an upward trajectory, showing continuous growth, while building out a sustainable business model. We’ll happily provide them with the financing they need to become a dominant force in the real estate technology market.”
Lighter Capital most recently demoed at FinovateFall 2013 where it showcased loan analysis and monitoring tools. Last month, the company launched a new Client Perks Program and a few weeks back appointed Anthea Louie as Chief Marketing Officer.
Revenue-based financing provider Lighter Capital has brightened up its services today with the launch of a new perks program.
The Lighter Capital Client Perks, which bundles business tools and service offerings, launches today for startups funded by Lighter Capital. Customers can use the program for free and benefit from offers that add up to $75,000 in savings from 30 companies (including Finovate alum Gusto), more than 10% of which are Lighter Capital clients. Offerings include cloud hosting, HR services, marketing and sales automation, CRM, and more.
“We recognize that in today’s business environment, it takes more than money for tech startups to achieve success – so we’ve assembled a lineup of services specially catered to assist early-stage companies,” said BJ Lackland, CEO of Lighter Capital. “Our goal is to help startups grow. We’d love it if companies can receive enough savings from these perks that they effectively pay us no interest on our loans. That’s a great benefit for everyone.”
Since it was founded in 2010, Seattle-based Lighter Capital has funded more than 270 startup companies with 450+ rounds of financing totaling more than $125 million. Designed for tech companies, Lighter Capital’s revenue-based financing model exchanges from $50,000 to $2 million in up-front capital for 2% to 8% of future revenue. Unlike with VC funding, startups retain full ownership of their company.
Lighter Capital last demoed at FinovateFall 2013 where it showcased loan analysis and monitoring tools. The company was recently ranked 776 on the Inc. 5,000 list for achieving a growth rate of 6.5x over the last three years.