Contraction in the venture capital markets has spurred tech startup founders to look for alternative funding sources, including non-dilutive revenue-based financing. New York-based Efficient Capital Labs launched in 2022 to fill a financing gap for tech startups that are based in one country and have a significant market presence and customer base in another.
Efficient Capital Labs finances businesses headquartered in India with operations in the US and plans to expand its lending to Singapore-based startups.
“The South Asia-US corridor is highly devoid of funding for the simple reason that any cross-border company is never evaluated as a global organization, only as a series of siloed companies in each country,” explained ECL’s Kaustav Das in a statement. That affects how startups are valued and the venture capital available to them.
In the past year, Efficient Capital Labs has provided $70 million in financing to more than 100 companies. Responsible fintech lender Community Investment Management provided the company with $100 million to on-lend to startups shortly after it launched.
Efficient Capital’s $11 million Series A equity round was led by QED Investors and 645 Ventures.
