If  you don't explore it, or don't use it or have it in your arsenal, it’s like playing tennis without a backhand, you just don't give yourself the best chance to win as a business.

So when we started Stake back in 2016, there was no way that there was any private credit available to fund the business. Venture credit wasn't around at all. And, it's sort of happened in the last few years, and I wish it was available, not necessarily that we would have taken it, but it would have been more valuable to have more options ultimately as a founder.

I think like ten years ago, venture debt just didn't exist here in Australia, right. Like VC hardly existed. ObviouslyVC has made massive advances and strides, and is now a buzzing ecosystem. I think venture debt, where we're playing, I think that's now we're trying to lead that market and grow out the venture credit solutions that can be available to startups.

And what excites me is the interaction between the two. If you're a founder, you need to scale quickly, you need to win the market, or you don't have the capital behind you.

You may need some funding. You should be looking at both; both equity and debt.There's just no downside and all upside to exploring your options. And I see a world in which maybe instead of raising $5 million of venture capital, you go raise $3 million of venture capital and you get $2 million of debt.

So the level that you need to raise at is lower. Because you're giving less of your company away. You've still got the capital you need to execute. You've got some leverage over the venture capital investor or the equity investor because you've got debt there and you’re just building your business sustainably, knowing that you need to go build it without giving it all away as you go along the journey.

So yeah, I see a world in a small number of years where actually people are going out and asking for term sheets of both or a hybrid of them.

So, look, if we get to that point - the ecosystem in Australia is pretty healthy.

About Mighty:

Mighty Partners is a growth credit provider supporting private and small cap public Australian businesses with non-dilutive capital. Credit should not replace venture capital investment, instead it should provider founders with an additional tool in their arsenal, so that they can leverage the right capital at the right time for their business.