ATLANTA--(BUSINESS WIRE)--Lume, a global provider of cloud and data center services, today announced that it has secured $400,000 in growth funding from Lighter Capital, a Seattle-based investment lender specializing in Revenue-Based Financing for small businesses. The funding will enable Lume to expand its data center and network footprint into strategic markets by the end of the year – including Chicago, Dallas, and Los Angeles – and roll out new Managed Cloud, Data Center and Hybrid Infrastructure solutions.
Lume, which was founded in 2012, provides solutions for companies that need help getting to the cloud, or with improving their existing cloud infrastructure. Built on redundant, enterprise-grade infrastructure, Lume’s solutions are tailored to meet client-specific needs and provide greater control, better performance and increased reliability. A growing number of large, nationally recognized brands are currently hosted on Lume’s infrastructure and the company has averaged a 75% increase in year-over-year growth since its inception.
Lume currently operates data centers in Washington, DC, Salt Lake City, and at two locations in Atlanta and in the UK. The rapid expansion of the company’s data center footprint has helped strategically position Lume to better serve the market – offering customers additional locations to host and manage their cloud environment.
“This financing will allow us to execute our strategic expansion plan in target growth markets and better serve the demands of our growing client base,” said Kyle Verzello, CEO for Lume. “And at the same time, it also allows us to protect the equity we’ve worked hard to build.”
The debt funding from Lighter Capital is the first outside investment for Lume – which has been “bootstrapping” since its inception – and will enable the company to grow without adversely impacting the company’s cash flow or sacrificing equity. Lighter Capital’s Revenue-Based Financing model is uniquely structured to match the ebb and flow of small business. Loan payments adjust in proportion to revenue, and there’s no loss of control or restrictive financial covenants.
“Lume is a very channel-centric company, with 88% of its business coming through its channel partners,” said Molly Otter, Chief Investment Officer for Lighter Capital. “With the infusion of funding, we’re helping the company enhance its potential for distribution with key partners in strategic markets – and ultimately accelerating its growth.”
“Lighter Capital made it easy for us to work with them,” Verzello said. “They really took the time to understand the unique financial and operational details of our business model. And we appreciate that they offered terms that were complementary to our business model – that scale as we scale, rather than burdening our cash flow with fixed payments.”
About Lume
Lume provides Managed Cloud, Data Center and Hybrid Infrastructure Solutions. Utilizing their global network and data center footprint, they provide solutions for companies that need help getting to the cloud or improving their existing cloud infrastructure.
Built on redundant, enterprise-grade infrastructure, their solutions are tailored to meet client-specific needs. Lume delivers premium solutions that provide more control, better performance and increased reliability.
For more information, visit http://lumecloud.com/.
About Lighter Capital
Lighter Capital provides $50,000 to $1 million in funding for growing technology businesses looking to accelerate their sales, marketing or product development efforts. Lighter Capital’s RevenueLoans are more flexible than traditional loans and equity investments - repayments rise and fall with a business’s revenue, there are no personal guarantees and no dilution. Through its proprietary underwriting process, which blends automated analysis with a deep understanding of technology business models, the company has created a new source of capital for growing businesses. For more information, visit www.lightercapital.com.
