Venture debt is a form of debt financing designed specifically for high-growth companies, typically those who have already completed a professional funding round from a venture capitalist, private equity or family office.

Venture debt involves providing capital in the form of a loan that is paid back with interest over an agreed period.

Unlike traditional bank loans that prioritise a company’s profitability, venture debt lenders look primarily at a startup’s growth potential.

Debt funding is provided as a loan, paid back with interest over an agreed term. Whereas equity financing, or venture capital, involves investors providing capital to start-ups in exchange for equity ownership.

Venture debt should be viewed as complementary to equity, where a hybrid funding model enables founders to achieve substantial growth whilst minimising overall dilution.

Venture debt funding is designed for scaling businesses, that have an established revenue profile, can demonstrate strong growth potential and a path to profitability.

Debt funding is typically for companies who have already completed a professional funding round – though this is not a mandate here at Mighty Partners.

Mighty supports businesses at all various stages and sizes. Common reasons for seeking venture debt include:

Bridge Funding: To extend cash runway, smooth cash flows, or achieve a specific milestone (i.e., becoming cashflow positive, support the completion of a capital raise).   

Accelerate Growth: To fast-track expansion plans and seize opportunities that might not be possible through organic cash flow.

Complement Equity Raise: Often used in lieu or to complement an equity raise where founders and investors are sensitive to greater dilution given the business is proven, growing, and becoming more valuable over time.

‍Investment Opportunities: To capitalise onM&A, or other investment opportunities.

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Our mandate offers significant flexibility:‍

Funding Structure: Term loan or funding facility

Funding Amount: Up to $5 million

Term Length: 6 to 36 months

Repayment profile: Optional interest-only period or equal monthly repayments

Drawdowns: Choose to receive the full funding upfront, or in stages over time

To qualify, businesses must:

(1) Be an Australian Business, or have an Australian entity through which revenues flows

(2) Have generated at least $50k in monthly revenue for the past 12 months 

(3) Demonstrate its ability to service the loan over its term

To get started, complete our quick onboarding form and create an account. Once submitted, you’ll need to securely share the below onboarding material via our partner portal:

1) Recent bank statements
2) Advisor access to accounting system (i.e. Xero, MYOB)
3) Cash flow forecasts

From here, our credit team will review your information and get in touch as needed.

The onboarding process takes just a few minutes. We strive to keep the process as simple and streamlined as possible.

Typically, you can expect to receive funds within 1-3 weeks from the time we receive your materials.

In most scenarios, our partners know what funding profile they would like, and request their ideal funding profile which we will then work towards. This can be tailored around:

a) Funding amount
b) Drawn downs - either all funds upfront, or in stages over time
c) Repayment term
d) Repayment profile - interest-only period or equal monthly repayments

Mighty Partners takes a general business security that is registered via the Personal Property Securities Register (PPSR).

No personal or director guarantees/collateral are required.

Absolutely. As your business grows, we can increase our lending capacity. We’re committed to supporting our partners for the long-term.

Loans range from $250k to $5m.

There is no requirement to draw the full facility upfront. Businesses have the flexibility to incrementally draw funds as needed.

We always aim to offer the amount of funding a business is looking for, and can comfortably service.

Our funding capacity increases as the business grows. Our aspiration is to continue to support your business over time and to form a long-term partnership.