Lighter Capital Supercharges its Growth with $130 Million Capital Raise, Offering More Technology Companies Non-Dilutive Funding
SEATTLE, August 29, 2023 — Lighter Capital, the leader in revenue-based financing for technology startups, today announced the close of two funding facilities: $100m in the US and Canada provided by Atlas, a division of Apollo Global Management and i80, and $30m in Australia provided by the Victorian Government and iPartners.
Lighter Capital will use the proceeds to fund hundreds of early-stage companies in SaaS, technology services, subscription services, and digital media, enabling them to access growth capital without selling equity.
Over the past decade, Lighter Capital has provided over 1000 rounds of non-dilutive financing. Its growing momentum includes opening new offices in Australia, offering more non-dilutive funding options, and launching the Lighter Capital Community, a CEO network that provides access to peers, introductions to valuable partners, as well as more than $100K in product discounts.
While VCs and Other Revenue-Based Financing Declines, Lighter Capital Grows
Raising capital in the current market has been challenging for many companies. According to research by KPMG, venture capital investment has dropped for the sixth consecutive quarter. In the second quarter of 2023, US venture capital activity experienced a $4.8 billion investment slowdown compared to the first quarter of 2023. Other revenue-based financing providers have announced staff reductions, management shake-ups resulting from losses, and a pullback from lending as it is becoming increasingly more difficult for companies without a proven track record to access credit facilities.
During these uncertain times, Lighter Capital continues to thrive. “After more than a decade in business, 2022 was our best year in the company’s history,” said Melissa Widner, CEO of Lighter Capital. “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.”
Lighter Capital offers startups a transparent and alternative source of funding that doesn’t require pitch decks, personal guarantees, or equity. Compared to traditional financing forms, obtaining growth funding from Lighter Capital takes a fraction of the time. Startups can leverage their revenue sources to obtain up to $4M in financing, including 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 $100K in product/service discounts.
“Lighter Capital’s model is so innovative — a debt provider that’s essentially a VC partner,” said Bant Breen, Founder and Chairman of Qnary. “We get the financial rigor, network, and strategic guidance that a VC would give us, and that’s been incredibly helpful.”
Use of Funds
The need for alternative financing is on the rise, and in response to this growing demand, Lighter will use these funds to help even more company founders obtain the capital required for their growth needs.
Lighter is committed to providing a range of flexible non-dilutive financing solutions that can meet the diverse funding needs of startups. These 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, startups can select the financing option that best aligns with their long-term funding requirements.
“We chose Lighter because of their long-standing reputation,” said Sunil Patro, CEO/Founder of Signeasy. “It was clear from the beginning that they respected and cared about our business. They took the time to understand our needs and worked with us to provide financing terms that would meet our shorter-term funding requirements and our longer-term business goals. That sort of transparency builds a more trustable relationship, which is why we are leaning into our partnership with Lighter.”
About Atlas
A Division of Apollo Global Management ATLAS SP Partners is a global investment firm that seeks to provide stable funding and capital markets services to companies seeking innovative and bespoke structured credit and asset-backed finance solutions. We’re proud to build upon a legacy of excellence anchored in deep expertise and client service across the asset management landscape. For more information, please visit www.atlas-sp.com.
About i80
i80 Group is an investment firm designed to propel the innovation economy forward by empowering growth. The firm provides bespoke financing solutions that are unique to each partner's needs, advancing them through critical growth milestones. Like the I-80 freeway from which it takes its name, the firm operates at the intersection of Silicon Valley innovation and Wall Street finance. For more information, please visit www.i80group.com.
About Invest Victoria
Invest Victoria is the State Government of Victoria's investment attraction agency, fostering long-term economic prosperity by enabling business opportunities and job creation for Victoria. Learn more at www.invest.vic.gov.au.
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 www.lightercapital.com.
