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The Key Difference Between Venture Capital and Venture Debt Incentives
Kal Jamshidi
Aug 4, 2025

The incentives of venture capital and venture debt are fundamentally different.

When it comes to venture capital, they operate a portfolio theory. And as a result, it's driven by the power law outcomes. So they're looking for 1 or 2 of their portfolio investments to hit and to hit big and return 100 times that investment.

Whereas when it comes to venture debt, returns are capped. And as a result, that means we need every business to be successful and durable.

That doesn't mean we're not excited by 100x outcomes.We just don't rely on it.

Our model is to back businesses with strong economics, not to let others fail in pursuit of a single outlier.

VC backs great ideas. We back great businesses.

About Mighty:

Mighty Partners provides smart, non-dilutive capital to scaling businesses across Australia and New Zealand. Our non-dilutive capital solutions are built for founders who value strong economics, durability, and control.