The startup fundraising process is a journey. Whether your business is just starting to focus more heavily on the customer, or if the goal is to continue to grow along with new innovations, startups have diverse funding needs and deserve diverse funding options – especially in times of growth when capital is critical.
Historically we have funded tech startups with revenue-based financing, providing over $150MM in more than 500 rounds of financing to over 300 startups. And today we’re excited to introduce two new entrepreneur-friendly financing solutions to help you reach your next milestone – without giving up equity, board seats, or personal guarantees.
Debt capital like lines of credit and term loans have traditionally been unavailable to startups until they raise millions of dollars from VCs. Only after raising venture capital can startups get access to capital from a number of tech banks and venture debt funds. But by some measures, only about 1% of startups raise venture capital.
At Lighter Capital, we specialize in providing startups that haven’t raised venture capital with 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 $3MM per company through a mix of financing structures and amounts, matching a startup’s needs. No one else does this for startups that haven’t raised venture capital.
More Ways to Fund Your Growth
The way we see it, the more startup financing solutions we can provide entrepreneurs over more stages of their companies’ growth, the better for everyone involved. Lighter Capital’s two new products – lines of credit and term loans – complement our historical revenue-based financing product. These can be combined for a total of $3MM in funding:
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. Get peace of mind knowing you can make essential payments when you need it – apply for a Lighter Line of Credit today.
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. Get the funding you need to act on the opportunities in front of you – apply for a Lighter Term Loan today.
Alternative Financing Solutions Are on the Rise
Non-dilutive alternative startup financing solutions are rapidly emerging as the go-to option for entrepreneurs. In our recent industry report, The Rise of Revenue-Based Financing, we showed that entrepreneurs are increasingly using revenue-based financing to delay or forgo equity rounds. In fact, many companies utilize a blend of traditional and alternative financing to retain ownership and control for founders and earlier equity investors.
Lighter Capital’s growth has accelerated quickly with this entrepreneur-friendly funding model, providing over 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. Several of our customers experienced exits well over $300MM, and others intentionally remain angel-backed or bootstrapped.
Our fintech lending platform pulls in 6,500 data points to analyze startups quickly and reduce entrepreneurs’ time to raise funds by over 90%. Our proprietary algorithm determines a credit rating and we use data science to predict a startup’s revenue growth, with 97% accuracy. 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.
Whether you’re looking to bring on that critical new hire or make essential payments, compare our flexible financing solutions and discover which options will help you achieve your next growth milestone.