Debt-financing firm Lighter Capital enters Canadian market


The Seattle-based firm, which has invested over $200 million in U.S. startups so far, is already in discussions with Canadian companies and will open a Vancouver office in April. (The Logic)

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Talking point: Lighter, which raised US$100 million in January, is entering Canada as the technology industry reels from the effects of COVID-19 and calls for new emergency-funding measures. The company lends startups up to $3 million, but takes a cut of monthly revenues instead of equity. It’s partnering with the Canadian branch of accelerator the Founder Institute to offer guidance to startups. Other well-capitalized firms are competing in this space, as well: Toronto-based Clearbanc, which provides growth capital in exchange for a fee, also offers alternatives to the traditional venture capital model, and raised $394 million in July 2019. Montreal-based Corl, which was founded in 2016, has a similar product.