Lighter Capital Closes Over 500 Rounds of Revenue-Based Financing for Tech Startups

SEATTLE, WA, May 16, 2019 -- Lighter Capital, the leading fintech lender to tech startups, announced today that it has financed over $150 Million in more than 500 rounds of Revenue-Based Financing to over 300 startups. The company also announced the release of its first ever Revenue-Based Financing industry report, tracking its emergence as the leading form of alternative funding for startups. Lighter Capital’s growth has accelerated quickly with this entrepreneur-friendly funding model, providing 300 rounds of financing in the past two years and capturing 72% of the Revenue-Based Financing market.

The industry report, The Rise of Revenue-Based Financing, details how Revenue-Based Financing has grown in popularity in recent years. The non-dilutive funding structure fits a wide array of startups, so long as they have revenue that’s relatively consistent. Lighter Capital has funded companies that have gone on to raise venture capital, including several with exists well over $300MM, as well as startups that are angel-backed and bootstrapped.

“Revenue-Based Financing is popular with entrepreneurs because it combines the best aspects of debt and equity,” said BJ Lackland, CEO of Lighter Capital. “Like equity, there’s a deep alignment between the investor and entrepreneur toward growth. However, the difference with this funding model is the entrepreneur doesn’t give up control or ownership in the same way they would to angels and VCs. This provides entrepreneurs greater options as they continue to grow their businesses.”

Lighter Capital’s fintech platform pulls in 6,500 data points to analyze startups quickly and reduce entrepreneurs’ time to raise funds by over 90%. The company uses proprietary algorithms to determine a credit rating and data science to predict a startup’s revenue growth, with 97% accuracy, on average. By using objective, data-driven practices, Lighter Capital provides $50K-$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.

Although Lighter Capital is the market leader in Revenue-Based Financing, it plans to keep innovating with more financial products to serve startups better and better.