Why Venture Debt Doesn’t Rely on Power Laws

Growth credit

Kal Jamshidi

Aug 5, 2025

Venture capital and venture debt serve very different purposes and they’re driven by fundamentally different incentives.

Venture capital relies on portfolio theory: they expect most bets to fail, with just one or two companies returning 100x. That works for them, but it doesn’t always work for founders caught in the power law model.

At Mighty, our approach to venture debt is grounded in durability, not just upside. Because returns are capped, our model depends on every business performing, not just one unicorn.

We’re not chasing outliers. We’re backing scalable businesses with strong economics, repeatable growth, and long-term potential.

Watch the video to learn more about how Mighty's investment lens differs from traditional VC.

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