Lume Secures $400K from Lighter Capital to Customize the Cloud for Enterprise Organizations
ATLANTA, Ga. –October 14, 2015 – Lume, a global provider of cloud and data center services, today announced that it has secured $400,000 in growth funding from Lighter Capital, a Seattle-based investment lender specializing in Revenue-Based Financing for small businesses. The funding will enable Lume to expand its data center and network footprint into strategic markets by the end of the year – including Chicago, Dallas, and Los Angeles – and roll out new Managed Cloud, Data Center and Hybrid Infrastructure solutions.
Lume, which was founded in 2012, provides solutions for companies that need help getting to the cloud, or with improving their existing cloud infrastructure. Built on redundant, enterprise-grade infrastructure, Lume’s solutions are tailored to meet client-specific needs and provide greater control, better performance and increased reliability. A growing number of large, nationally-recognized brands are currently hosted on Lume’s infrastructure and the company has averaged a 75% increase in year-over- year growth since its inception.
Lume currently operates data centers in Washington, DC, Salt Lake City, and at two locations in Atlanta and in the UK. The rapid expansion of the company’s data center footprint has helped strategically position Lume to better serve the market – offering customers additional locations to host and manage their cloud environment.
“This financing will allow us to execute our strategic expansion plan in target growth markets and better serve the demands of our growing client base,” said Kyle Verzello, CEO for Lume. “And at the same time, it also allows us to protect the equity we’ve worked hard to build.”
The debt funding from Lighter Capital is the first outside investment for Lume – which has been “bootstrapping” since its inception – and will enable the company to grow without adversely impacting the company’s cash flow or sacrificing equity. Lighter Capital’s Revenue-Based Financing model is uniquely structured to match the ebb and flow of small business. Loan payments adjust in proportion to revenue, and there’s no loss of control or restrictive financial covenants.
“Lume is a very channel-centric company, with 88% of its business coming through its channel partners,” said Molly Otter, Chief Investment Officer for Lighter Capital. “With the infusion of funding, we’re helping the company enhance its potential for distribution with key partners in strategic markets – and ultimately accelerating its growth.”
“Lighter Capital made it easy for us to work with them,” Verzello said. “They really took the time to understand the unique financial and operational details of our business model. And we appreciate that they offered terms that were complementary to our business model – that scale as we scale, rather than burdening our cash flow with fixed payments.”
Lume provides Managed Cloud, Data Center and Hybrid Infrastructure Solutions. Utilizing their global network and data center footprint, they provide solutions for companies that need help getting to the cloud or improving their existing cloud infrastructure. Built on redundant, enterprise-grade infrastructure, their solutions are tailored to meet client specific needs. Lume delivers premium solutions that provide more control, better performance and increased reliability.
For more information, visit http://lumecloud.com/.
Lighter Capital is the pioneering leader in founder-friendly, non-dilutive financing. Since 2010, we have provided hundreds of millions of dollars in over 1,000 rounds of financing to U.S., Canadian, and Australian tech companies. Founders achieve success on their terms with Lighter’s tech-enabled financing which has no fees and does not require the company to give up equity. The application process takes minutes and requires no pitch deck. Beyond financing, Lighter’s “more than money” benefits provide founders access to invaluable connections within the Lighter Capital Community, resources, and product discount opportunities. Learn more and apply at https://www.lightercapital.com.
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