Lighter Capital Secures $30M to Fund Australian Tech Startups
PRESS RELEASE
SYDNEY, 28 January, 2025 — Lighter Capital, a National Australia Bank Ventures portfolio company and the leader in non-dilutive financing for technology startups, today announces the close of a new Australian funding facility of $30 million, provided by the Victorian Government and iPartners.
Lighter Capital will use the proceeds to fund hundreds of early-stage Australian startups in SaaS, technology services, subscription services, and digital media, giving them access to growth capital without selling equity.
Since 2010, Lighter Capital has provided over 1,000 rounds of non-dilutive financing to growing startups. After the company’s expansion into Australia in 2021, the company launched the Lighter Capital Community, an exclusive founder network that connects startup leaders to peers and growth partners, and it added new Client Perks that now include more than $200,000 in product discounts.
Lighter Capital Meets Growing Demand for Non-Dilutive Funding
Technology startups with recurring revenue are well-suited for organic growth, but that growth can be slow without additional capital. In today’s increasingly competitive markets, demand for growth capital remains high. Suppliers, however, are still highly-selective when it comes to allocating capital, according to Cut Through Ventures Q3 2024 Cut Through Quarterly.
The need for alternative financing is rising. In 2024, Lighter Capital doubled the value of its Australian portfolio.
Though many of its competitors have come and gone in the last decade, Lighter Capital continues to thrive.
“Just like the incredible startups we fund, we believe consistency wins the race,” said Melissa Widner, CEO of Lighter Capital. “It’s a great privilege to help Australian entrepreneurs achieve their dreams on their terms by providing funding that doesn’t require selling equity or ceding control of the business.”
Lighter Capital offers startups an alternative source of growth capital with a financing process that’s objective, transparent, and faster than raising venture capital or other forms of funding. Without requirements for pitch decks, personal guarantees, or equity, it’s a founder-friendly capital option. Startups can leverage their revenue streams to secure up to $4M in financing, which includes access to the Lighter Capital Community and $200,000 in software and services discounts.
Following the close of the funding facility, Javier Quintanilla from iPartners Capital Markets — Corporate Origination said, “Lighter Capital fills an important gap in the startup funding ecosystem, providing innovative non-dilutive financing solutions to tech startups underserved by traditional banks and VCs. We have enjoyed watching their continuing success; and look forward to seeing further growth in the Australian tech startups they support.”
Bolstering Australian Entrepreneurs
Lighter Capital will use these funds to help even more Australian entrepreneurs raise capital for their growing businesses — without diluting their equity. The company’s flexible financing solutions meet the diverse funding needs of technology startups. Founders can access term financing featuring fixed monthly payments or financing with repayment terms that adapt to future revenues. With term lengths of up to three years, startups can choose a financing option that best aligns with their short- and long-term goals.
Victoria-based CourseLoop, a curriculum management platform, had captured over 25% of the Australian higher education market when its CEO and founder Brian Clark began looking to expand into the United States. Though he considered VC funding, the timing wasn’t right. Lighter Capital’s funding was the bridge the startup needed to build out its U.S. business and raise its Series A, which led to its acquisition by TechnologyOne late last year.
“The U.S. venture capital firms we engaged with loved our model and the success we had in Australia and the United Kingdom. Demonstrating similar success in the U.S. market was our last hurdle prior to our first institutional funding round,” Clark said. “While we were on our way with our first U.S. client, UCLA, the Lighter Capital funding helped us bridge through that transition. We’re thrilled that we were able to secure the funding we needed to fuel our U.S. growth without diluting our existing shareholders. Lighter Capital not only delivers friendly financing, but they also provide valuable connections in Australia and the U.S.”
About iPartners
iPartners provides self-directed and -advised wholesale investors access to institutional grade alternative assets for wealth creation, income generation and portfolio diversification. Established in 2017; by experienced investment professionals Travis Miller and Rob Nankivell, iPartners has raised more than $5 billion in investor funds via the platform. For more information, visit https://ipartners.iplatforms.com.au/.
About Invest Victoria
Invest Victoria is the State Government of Victoria's investment attraction agency, fostering long-term economic prosperity by enabling business opportunities and job creation for Victoria. Learn more at https://www.invest.vic.gov.au.
Lighter Capital is the pioneering leader in founder-friendly, non-dilutive financing. Since 2010, we have provided hundreds of millions of dollars in over 1,000 rounds of financing to U.S., Canadian, and Australian tech companies. Founders achieve success on their terms with Lighter’s tech-enabled financing, which does not require the company to give up equity. The application process takes minutes and requires no pitch deck. Beyond financing, Lighter’s “more than money” benefits provide founders access to invaluable connections within the Lighter Capital Community, resources, and product discount opportunities. Learn more and apply at https://www.lightercapital.com.
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