Lighter Capital Partners with Silicon Valley Bank
Lighter Capital , which offers an alternative to venture capital and traditional bank loans via revenue-based financing, has partnered with Silicon Valley Bank (SVB) to better serve early stage tech companies seeking online access to debt capital and banking services. Under the partnership, Lighter Capital will provide debt financing while SVB will support entrepreneurs with commercial banking solutions and guidance “based on more than 35 years working with high-growth technology and life science companies.”
Founded in 2010, the Seattle, WA-based company has offers a different fundraising path for early-stage tech companies by providing up to $3m in a fraction of the time it takes to raise from traditional sources. The company’s underwriting platform pulls in 6,500 data points to analyze applicants, using “proprietary algorithms” to determine a credit rating and data science to predict a startup’s revenue growth with 97% accuracy, on average.
“This partnership changes how startups are funded and grow. SVB is the ideal partner for us and the startups we fund, setting them up for long term success. Tech entrepreneurs want financial services designed for their unique needs, and they want to access everything online. Lighter Capital’s fintech platform uses algorithms to predict startup performance which allows us to provide capital quickly. The SVB partnership gives startups a bundle of tailor-made solutions they can obtain at one online destination, along with access to larger amounts of debt financing as startups progress to their Series A round and beyond.” – CEO of Lighter Capital, BJ Lackland.
“SVB is dedicated to helping entrepreneurs increase the probability of their company’s success and this partnership represents another way we are delivering on that mission. Our partnership with Lighter Capital enables early stage startups, many of which have not yet raised venture capital, to access debt capital and banking services to ignite their growth and set them on their path from pre-VC through IPO.” – Managing Director, Digital Partnerships at Silicon Valley Bank, John Willard.
Bottom Line: Perks included.