Venture capital alternative Lighter Capital has a $30 million war chest to lend to local startups thanks to support from the Victorian government and iPartners.
The 13-year-old revenue-based Wall Street financier offers non-dilutive funding to founders in the US, Canada and Australia. Invest Victoria tipped $10 million into the $30 million fund, supported by New York investment firm i80 Group.
Lighter also put together a $100m fund in the US and Canada.
The business lends to early-stage companies in SaaS, technology services, subscription services, and digital media without taking equity. The company has also opened new offices in Australia
Startups can leverage their revenue for up to $4 million in financing, and also score access to the Lighter Capital Community, a free networking resource where founders collaborate with like-minded CEOs, gain capital partner connections, and receive up to $100,000 in product/service discounts.
Lighter Capital CEO Melissa Widner said that while it’s a challenging time for startups seeking capital, her business offers an alternative source of funding that doesn’t require pitch decks, personal guarantees, or equity in a faster turnaround time and demand is growing
“After more than a decade in business, 2022 was our best year in the company’s history,” she said.
“It’s a great privilege to help founders achieve their dreams on their terms by providing funding that doesn’t require selling equity or giving up control.”
The non-dilutive options include revenue-based financing with adaptable payment terms, term financing featuring fixed monthly payments, and contract financing, which offers upfront capital for longer-term contracts, with payment terms spanning up to three years.