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August 10, 2011 03:00 pm GMT

Lighter Capital's Debt Without Equity Fundings Expand At Perfect Time. Also"Tomato Fight!

lighter-capital-logo-300dpiThe economy is a mess. And while venture capital is still flowing like whiskey during the Prohibition, it's not right for every business. A year ago we wrote about the birth of a new type of investment fund, Revenue Loan. The experiment has worked, says founder Andy Sack. They're expanding it, changing their name, and offering $500,000 to the right type of startup.First, the basics. Revenue Loan is now Lighter Capital. They've completed eight revenue loans in the last year. The companies received $100k - $500k each in a loan. They then pay a small (3ish) percent of their monthly revenue to Lighter Capital until the initial capital has been paid off 3x-5x. Sound expensive? It can be a lot cheaper than equity venture rounds in the long run for the right companies.Usually Lighter is looking for startups with real revenue and growth. But in at least one case they invested pre-launch. Check out Tomato Battle, where thousands of people are paying $50 to have a massive tomato fight. You'll probably see me at the next one throwing tomatoes along with everyone else.

Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/OwKCinmJg4A/

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