TLDR:
- Efficient Capital Labs secures $11 million to provide revenue-based financing for cross-border software innovators.
- Contraction in the venture capital markets has led tech startup founders to seek alternative funding sources like revenue-based financing.
Efficient Capital Labs, a New York-based company, has secured $11 million in funding to provide revenue-based financing for cross-border software innovators. The venture capital market’s contraction has prompted tech startup founders to explore alternative funding sources like revenue-based financing. Efficient Capital Labs fills a financing gap for tech startups based in one country but with a significant market presence and customer base in another.
Efficient Capital Labs focuses on financing businesses headquartered in India that have operations in the US. The company intends to expand its lending to startups based in Singapore as well. Co-founder Kaustav Das highlighted the lack of funding in the South Asia-US corridor, where cross-border companies are often not evaluated as global organizations. Thus, they are valued differently and have limited access to venture capital.
Since its launch in 2022, Efficient Capital Labs has provided $70 million in financing to over 100 companies. Responsible fintech lender Community Investment Management supplied the company with $100 million to lend to startups shortly after its inception. The recent $11 million Series A equity round was led by QED Investors and 645 Ventures.
In conclusion, Efficient Capital Labs’ funding provides a significant opportunity for cross-border software innovators to access financing in a market where traditional venture capital may be limited. The company’s focus on revenue-based financing offers a non-dilutive funding option for tech startups looking to expand their operations globally.
