Delivering flexible, entrepreneurial financing
Venture lending is one of the most valuable financial tools available to emerging technology companies. In today's economy, start-ups are expected to achieve positive liquidity with less equity funding. This means that savvy entrepreneurs must have a financial strategy that extends their business runway and provides the financial staying power to make it to the finish line. This is the reason that top venture-backed companies turn to Lighthouse Capital Partners.

Lighthouse has built a consistent track record of investing in companies that have become market leaders. We have an extensive business and venture capital network that we use on behalf of our portfolio companies. And our well-capitalized partnership and loyal base of limited partners provide the financial resources to fund substantial investments. Because we are a private partnership, we can structure more flexible, less restrictive financing solutions than regulated lending institutions, like banks. This flexibility is essential to support the changing requirements of emerging companies. Our independence gives our portfolio companies the greater financial independence they need to achieve their business visions.

Achieving success together
Lighthouse is passionate about the success of our portfolio companies, and that passion is reflected in the results we achieve together. We are known for the close working relationships we build with the management and the Boards of Directors of our companies, and the depth of our commitment to helping them reach their business milestones, from launch to liquidity.

The Lighthouse Difference
Independence. Lighthouse is not regulated like a bank. Lighthouse is a private partnership, which gives us crucial independence that our independently minded clients want and appreciate.

Flexibility. The most important difference is the flexibility of our products. We can tailor our investment to your specific needs and cash flow requirements. We understand that the road to success is not always smooth. As a Lighthouse client, you can count on us to stay close to your business to help you, even through tough times. This flexibility, combined with our competitive pricing, gives Lighthouse the unmatched ability to provide the kind of financing support you need, when you need it.

Experience. The Lighthouse team is the most experienced team of venture lenders in the industry. Our founders have worked together since 1988 lending to venture backed startups. Each of the managing directors at Lighthouse has substantial experience in financing or managing venture backed start-up companies. This experience allows Lighthouse to customize financing solutions for the best start-up companies in ways that provide true runway extension.

Loyalty. While our products are flexible, our commitment to your company is fixed. We focus on long-term success, just as you do. Once you become a Lighthouse portfolio company, we stay the course through good times and bad. We take a long-term approach to investments, and take a deep interest in your mission, an understanding of your business, and a strong belief in your ultimate success.

Risk taking. Unlike banks, we believe there is opportunity in risk because we have the experience to appropriately judge risk and an investor base that supports our approach to investing. We take an entrepreneurial, rather than a “credit analysis”, approach to evaluating risk. Like a venture capitalist, we are investing in your future potential based on your current strengths.

Benefits of Venture Lending
Capital efficiency is paramount in today's economy. Today's entrepreneurs need to stretch every dollar to achieve success. Venture lending is a low-cost way for start-ups, even those that have not yet achieved positive cash flow, to extend their financing horizon. That means venture lending can be less expensive in the long run than financing your operations entirely with equity funding.

From a financial strategy point of view, venture loans can be a useful, even critical insurance policy. To help ensure that you reach an important customer or product milestone, you can use venture lending to extend the runway to achieve those milestones and enter your next equity fundraising event with a better valuation. Most venture capitalists encourage their portfolio companies to take on a responsible mix of debt and equity dollars.

For example, a communications start-up needs a round of financing totaling $20 million. Of this amount $5 million is for equipment. The company could try to raise the entire $20 million in equity financing from venture capitalists, but that would cause more significant dilution at the time of liquidity. Their financially astute management team decides to raise $15 million from venture capitalists and $5 million from Lighthouse in the form of equipment venture lending. This financing model preserves more of the employees' stake in the company and also creates a stronger balance sheet.

Venture lending is also handled differently from traditional bank loans. For example, banks may require that you maintain a minimum account balance with them equal to the amount you borrow. The practical result is that you are borrowing your own money. At Lighthouse, we lend you our money. Banks also often tie loans to receivables, which can be tough for companies that are just starting to achieve revenue.

Banks also want to convert you to traditional commercial credit, and may structure their terms to include financial covenants and letters of credit that direct and reduce your operating flexibility. It is also extremely difficult for banks, as regulated entities, to restructure or refinance loans, which eliminates the possibility of flexibility just when you might need it most.

Lighthouse Products
Lighthouse offers a wide variety of financing products, structured to meet your needs. These products fall into two broad categories:

Growth capital. Provides operating capital for product development, product or geographic expansion, acquisition of technology, or just about any key operational imperative.

Equipment financing. Allows you to borrow against the equipment you purchase, such as computers, manufacturing equipment or other assets, and free up equity dollars for higher ROI use, such as research and development or sales and marketing.

We recognize that no two companies are alike, so we don't apply just one product or one financial template to all of our clients. We work with you to decide how to best incorporate debt as part of your overall financial strategy. Based on our extensive experience working with start-ups, we can advise you on how to analyze your investment needs over time and get the maximum return from your operating capital.

We also understand that financing, while a crucial tool in the entrepreneur's arsenal, is just as important as time. We have a very efficient process for qualifications and approval, and our financial managers and support staff – all of your day-to-day contacts – are trained to respect your time and be responsive to your needs.