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.