Seattle-based Lighter Capital, which provides growth capital to tech startups, has entered the Canadian market to provide debt financing to technology companies. Since 2012, Lighter Capital has invested over US$200 million in more than 350 U.S.-based startups in over 650 rounds of financing.
SEATTLE–(BUSINESS WIRE)–Lighter Capital, the leader in providing growth capital to tech startups, today announced it is making its debt financing offerings, including term loans and lines of credit, available to the Canadian market. The expansion of Lighter Capital’s debt-financing business will provide Canadian entrepreneurs with an alternative to traditional equity sources such as venture capital or bank financing.
Lighter Capital is a fintech company that has created a new fundraising path for early-stage tech companies. Lighter Capital provides founders up to $3 million of non-dilutive growth capital in a fraction of the time it takes to raise from traditional sources. Rather than take equity, the company takes a percentage of monthly revenues over the life of the loan. Unlike traditional funding sources, Lighter Capital doesn’t require board seats, warrants or personal guarantees from its borrowers. Since 2012, Lighter Capital has invested over $200 Million in more than 350 U.S.-based startups in over 650 rounds of financing. Twenty percent of these companies have had a successful exit, such as Jive Communications, MapAnything, and Steelbrick.
“There’s no question that debt is the most cost effective form of capital for early stage companies,” stated Thor Culverhouse, CEO of Lighter Capital. “Equity is comparatively very expensive, especially for early-stage entrepreneurs. What we’ve done is create a fast, easy way for revenue-generating startups to access financing without having to give up any equity or control.”
Lighter Capital is already in active discussions with Canadian startups and will open an office in Vancouver in April with a dedicated team focused on growing its presence in Canada. Lighter Capital has also partnered with the Canadian outpost of the Founder Institute, the world’s largest startup accelerator, in order to provide startups with the advice and support needed to grow their companies.
“We have been fortunate to have mentored more than 200 tech CEOs and helped launch their companies,” stated Sunil Sharma, Managing Director of Techstars Toronto and Chapter Director of the Founder Institute Toronto. “With the arrival of Lighter Capital, we see an immediate alignment with the kind of tech startups that Canada has been producing with such success and we are excited to be working with them.”
Tapping into a Growing Market
Tech has been one of the fastest growing sectors in Canada in recent years, with cities across the country putting Canada’s tech industry on the map. According to a study published by the CVCA, there was a 69% increase in VC investment in 2019 with $6.2 Billion invested in over 539 deals vs $3.7 Billion invested in 2018.
Lighter Capital’s debt-based financing represents an alternative to VC financing for early stage startups post-seed that are trying to fund growth initiatives without dilution. Additionally, Lighter Capital’s funding is complimentary for those startups that have already taken VC funding and are between rounds.
“With the Canadian tech industry’s continued growth, we’re seeing a correspondingly greater need among startups for access to venture capital as well as to various forms of debt financing,” stated Meredith Powell, Vancouver-based venture partner at Voyager Capital, an investor in Lighter Capital. “Lighter Capital is a trailblazer in the area of debt-based financing and I have little doubt that, given the increasing demand for their services, they’re positioned for success across the nation.”
About Lighter Capital
Lighter Capital (https://www.lightercapital.com/) has revolutionized startup financing by making it easy for entrepreneurs to quickly access up to $3 million in growth capital and working capital with zero dilution and full control over how to use the funds. Lighter’s fintech platform pulls in 6,500 data points, uses proprietary algorithms to determine a credit rating and data science to predict a startup’s revenue growth with 97% accuracy, on average. Lighter Capital has provided over $200 Million in 350+ startups in over 650 rounds of financing, including MapAnything, Jive, Quip, and more.
Lighter Capital offers a mix of entrepreneur-friendly product offerings—including term loans with pre-approval for a forward commitment and lines of credit—to empower early-stage tech startups with the flexibility they need to fund the business at different stages of growth. More at www.lightercapital.com.