Seattle’s Lighter Capital, which offers an alternative to venture capital and traditional bank loans, today announced three new investments in startups based in Dallas, Minneapolis and the Seattle area. It is backing Dallas’ BinaryWave, developing products and services for the support of Microsoft SharePoint; Bellevue’s HarborCloud, creating virtual desktops for QuickBooks, PeachTree and other services; and Minneapolis’ TheDataBank, a provider of customer relationship management software for nonprofits.
Formerly known as Revenue Loan, the firm exchanges cash for a percentage of future revenues, rather than the equity stake that venture capitalists demand. Typically, Lighter Capital’s loans are in the $50,000 to $500,000 range.
With the new investment, the Andy Sack-led firm now has 16 portfolio companies in a wide range of industries.
“The revenue-based financing model can provide capital now to help small businesses grow to that next level, while avoiding dilution, loss of company control, personal guarantees, or fixed repayment schedules. This kind of financing aligns the goals of the investor and the business owner towards mutual success,” said Rob Belcher, a principal at Lighter Capital, in a release.