SEATTLE -- (BUSINESS WIRE) -- Lighter Capital, a leading pioneer of revenue-based financing, today announced that it has provided growth funding to three emerging technology companies in Colorado, including Envisiontel (Broomfield, CO), Influence Technologies (Denver, CO), and YogaDownload (Denver, CO). These investments, totaling $500,000, expand Lighter Capital’s footprint in one of the fastest growing tech markets in the country – and give further rise to a lending model that has emerged as an alternative to equity-based venture funding.
“More and more tech entrepreneurs are discovering the benefits of revenue-based financing," said BJ Lackland, CEO of Lighter Capital. "Banks won’t fund small tech companies. And angels and venture capitalists take significant equity, seizing ownership and control from the entrepreneurs. Revenue-based financing is the best of both worlds – growth capital without dilution or loss of control. Entrepreneurs seeking quick capital to boost sales and marketing, or launch a new product, shouldn't have to sell 20-50% of their company to angels and VCs.”
Lighter Capital provides $50,000 to $1 million in Revenue-Based Financing, and typically invests in software, SaaS, and tech services companies looking to accelerate sales, marketing or product development efforts.
Influence Technologies, which has developed a next-generation online video platform for the enterprise, secured $250,000 in financing from Lighter Capital based on its solid revenue history and potential for future growth.
“Early on we explored various types of capital sources from banks and VCs,” said Jeff Swaim, Founder and Tribe Leader at Influence Technologies. “We discovered banks don’t lend money and VCs were pretty interested in running the show. Lighter Capital was exactly what they represented – a lighter process. We closed our deal in less than 6 weeks – from initial introduction to ink on the paper.”
Envisiontel, which secured $150,000 from Lighter Capital, develops cloud-based subscription software that lets customers automate the tedious tasks associated with managing student access to online training materials.
“As a software vendor, Envisiontel was in a unique financing position,” said Matt Lee, Founder and CEO of Envisiontel. “We needed to add some headcount in order to grow, but wanted to maintain control in order to fine-tune our business model. Lighter Capital offered a solution that was perfect for us. By paying back our loan as a percentage of monthly revenue, their model gave us the capital we needed with the control and flexibility we desired.”
Revenue-based financing is uniquely structured to match the ebb and flow of small business. Loan payments adjust in proportion to revenue, and there’s no loss of control or restrictive financial covenants.
“With our first round of funding from Lighter Capital we were able to achieve 95% growth in the span of a year,” said Jamie Kent, Founder and CEO of YogaDownload – who twice funded her online yoga studio with Lighter Capital. “Now, with the addition of a second round of funding from Lighter Capital, the sky is the limit.”
For more information about Lighter Capital, or to apply for financing, visit www.lightercapital.com.
About Lighter Capital
Lighter Capital is the leading provider of revenue-based financing for growing technology companies. The company is filling the funding gap left by banks, angel investors and VC's. Through its proprietary underwriting process – which blends financial data, technology and a deep understanding of software driven business models – the company has created a new source of capital for growing businesses that often get overlooked by traditional funding providers. Lighter Capital believes companies perform better when owners are focused on building their businesses, and not fund-raising. Addressing this issue, the company has developed a "lighter" tech-enabled application process that substantially reduces both the effort required to apply and the time to get approved.
Lighter Capital was founded in 2010 by a group of entrepreneurs and venture capitalists who believed there was a better way to fund growing businesses in the USA and Canada. Today the company has completed over 40 financings and is working hard to make capital more available to more technology companies at a much faster pace than traditional banks or equity investors. The company is based in Seattle, Washington and is backed by leading venture capital firms, Voyager Capital and Summit Capital.