Entrepreneurs Funding Entrepreneurs

NO DILUTION. NO LOSS OF CONTROL. NO PERSONAL GUARANTEE.

$50-500k in founder-friendly RevenueLoans™ for small but growing businesses who have a proven revenue model and healthy gross margins.

Origins

We founded Lighter Capital to liberate small business owners from the onerous demands of banks and VCs. As entrepreneurs ourselves, we felt it was time for some serious innovation in the financial services industry.

People

Our principals have built and sold several high-tech companies, and we knew from our own experience that, sometimes, you can have a great business that just doesn’t work for traditional VC or bank financing.

Model

We created the RevenueLoan™ to be light-weight and flexible financing option with entrepreneur-friendly terms. With no dilution, no loss of control, and no fixed repayment schedule, entrepreneurs can stay focused on growing their businesses.

Lighter Capital vs. Other Methods

Bank / Debt VC / Equity Lighter Capital
Control Financial covenants / ratios / personal guarantee Board seat / protective provisions / drag-along Minimal, non-financial covenants
Dilution None / warrants Moderate to extreme None / warrants
Flexibility / leverage Inflexible, fixed payments, high financial leverage risk Highly flexible / no payments, no financial leverage risk Flexible, payments linked to revenue, low financial leverage risk
Alignment of Interests Unaligned or negatively aligned Growth and exit at all costs, possible mismatch Aligned strictly with revenue growth at all times
“Exit Strategy” Neutral Dependent upon “exit,” constantly pushing for M&A Entrepreneur-aligned (exit is welcome, but not necessary)
Cost of Capital 5-10% (stated), 10-20% (actual) 30%+ (stated to investors) 25% +/- (entrepreneur-aligned; only “costs more” if company exceeds plan on the upside)

We fund some wacky companies that (hopefully) make money. They have one thing in common: brilliant entrepreneurs building awesome businesses. If that sounds like you, we’d like to hear more about what you’re up to. We’re always looking for new entrepreneurs to partner with.

  • Revenue run rate of $200k annually or more
  • Gross margins of 50% or higher
  • Solid plan for use of funds with near-term return (“money machine”)
  • Can use $50k to $500k in funding immediately
See if you qualify
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