As people try to rework and reimagine startup funding and venture capital, there are any number of interesting ideas coming to light. The latest comes not from the Valley but from our neighbor to the north, Seattle.
It’s called Lighter Capital. And the idea is to make funding more accessible to companies that are demonstrating a successful track record—with fewer strings attached.
At Lighter Capital, we’re breaking down barriers to small business growth funding. Our revenue-based finance model exchanges growth capital for a fixed percentage of the company’s revenues. This structure is more flexible, easier, and faster than traditional lenders, making us “lighter” than the marble and mahogany of the antiquated banks.
Lighter Capital is not a venture capital firm. In fact, it targets companies that are generating revenue of more than $1 million and just need an extra boost. It doesn’t take an equity stake as part of its investment, instead agreeing to a fixed percentage of revenues up to a certain cap.
So if you’ve got $1 million in revenue, margins of 50% or more, and a way to put up to $500,000 to work, you should be hitting these guys up.
But you have to hurry. You’ve only got until August 31.
For more information, visit Lighter Capital or follow @lightercapital on Twitter.