Seattle investment firm Lighter Capital announced two new funding facilities: $100 million for U.S. and Canada-based startups, and $30 million for Australia-based companies.
Since launching in 2010, Lighter Capital has invested more than $300 million in 500-plus tech companies across the U.S., using a process known as “revenue based financing” that lets early-stage startups raise cash without giving up equity or board seats.
Startups agree to share a percentage of future revenue with Lighter Capital; loan payments are tied to monthly revenue. Lighter also offers different financing options tied to fixed monthly payments or monthly cash flow.
Lighter doubled its book size in 2022 amid the tech downturn and venture capital slowdown, marking its best year ever, as it funded more companies that were on a traditional VC path and didn’t want to risk a flat or down round.
Atlas, a division of Apollo Global Management, and i80 Group invested in the U.S.-focused facility, while Invest Victoria and iPartners invested in the Australia-focused facility.
Lighter Capital is led by CEO Melissa Widner, a longtime venture investor who joined in 2020 and is based in Sydney. The firm was co-founded by Andy Sack along with Randall Lucas and Erik Benson of Voyager Capital.
“Despite these challenging times, at Lighter Capital, we are experiencing growing momentum for our non-dilutive funding products and services,” Widner said.
