Business

Lender Lighter Capital has another $30 million for startups thanks to the Victorian government

- February 4, 2025 2 MIN READ
Melissa Widner
Lighter Capital CEO Melissa Widner

Venture capital alternative Lighter Capital has extended another $30 million fund offering non-dilutive funding to startups, with the Victorian government and iPartners, 

The 15-year-old revenue-based financier, originally from New York, launched in Australia in 2021, and was subsequently backed by Invest Victoria, the state government’s investment attraction agency, and iPartners, with an initial $30 million fund. They’re extending their original investment by adding another $30m facility.

Since 2010, Lighter Capital has provided over $350 million in non-dilutive capital to more than 500 startups across 1000 deals.

The fintech lends revenue-based financing to early-stage companies in SaaS, technology and subscription services, and digital media, without taking equity.

It has a partnership with NAB that offers funding to startups that are at least 12 months old with at least 6 months of recurring revenue and at least $20,000 in monthly recurring revenue.

Lighter Capital CEO Melissa Widner said the new fund will back hundreds of early-stage Australian startups in SaaS, technology services, subscription services, and digital media.

“It’s a great privilege to help Australian entrepreneurs achieve their dreams on their terms by providing funding that doesn’t require selling equity or ceding control of the business,” she said.

Startups can leverage their revenue streams to borrow up to $4 million, alongside access to the lender’s founder network as well as $200,000 in software and services discounts from a program called Client Perks, which includes $25,000 in AWS credits.

Repayments can be done in fixed monthly payments or in terms that adapt to future revenues, for up to three years. The firm doesn’t ask for pitch decks or personal guarantees.

Amid constrained venture capital investment, it’s clear that founders are looking at other ways to obtain funding and last year Lighter Capital doubled the value its Australian portfolio. 

Javier Quintanilla from iPartners Capital Markets said: “Lighter Capital fills an important gap in the startup funding ecosystem, providing innovative non-dilutive financing solutions to te startups underserved by traditional banks and VCs”.Â