Mighty Partners (formerly Fundabl), arising force in venture debt, announces an ambitious plan to tackle the funding gap for Australia's most promising businesses.

With a sweet spot for providing loans between $500,000 and $5 million, Mighty Partners is meeting the demand for businesses often overlooked by traditional lenders and facing a challenging funding climate, by providing a new capital resource.

Whilst there are growing funding resources for early-stage start-ups and larger, later-stage businesses (‘mega deals’), there is an evident gap for scale ups seeking loans of up to $5 million on flexible terms.

"Australia is brimming with innovative companies poised for breakout growth, but too many are facing challenges when it comes to raising capital on good terms. When you look at the funding landscape in Australia, there aren’t many lenders focused on mid-range deals at the $500,000 to $5 million mark," says Nathan Ryba, Partner at Mighty Partners.

"We're here to break down that wall.  We want to partner and empower founders with flexible capital options to achieve their ambitions. Growth, they can truly own."

The commitment comes at a critical time, in a tough raising environment for scale ups post the exuberance of the COVID boom in VC, which has meant equity investment has dwindled, leaving quality businesses to seek alternate options. By meeting the demand for customised, founder-first debt capital solutions to compliment equity deals, Mighty Partners is changing the game for founders.  

“We’ve seen many founders leveraging debt to achieve their ambitions, or as a means to preserve their equity” says Ethan Singer, Co-Founder. “We truly believe we can sit alongside the likes of Blackbird, Airtree, OIF and Square Peg, as a driving force for entrepreneurs in Australia, albeit with a model that ensures founders own more of their own company.”  

“Equity dilution is always a very sensitive topic for founders, especially those that know they are onto something great, and their business is becoming more valuable over time. We are not an alternative, but complementary to equity capital. There is more than one way to construct the capital stack and raising the all-equity model might not be the most efficient and optimal approach for some founders at that point in time” adds Singer.

By providing a critical new funding resource, Mighty Partners is empowering founders to scale their businesses on their own terms.

Mighty Partners has already earned the trust of over 65 companies to date, demonstrating the demand for a new breed of lender that understands the needs of today’s founders. Partners include Lyka, T-Shirt Ventures, Safewill and Amber Electric, which recently completed their $28m Series C round.

Mighty Partners Venture Debt Fund comes following the successful completion of a $3.2 million raise to support its growth momentum.

‍

See the coverage: Capital Brief