Venture Debt

We saw too many Australian Series A and B founders facing a tough choice: raise again at a flat or down round just to extend runway, or pull back on the growth plan that earned the last round.

That's not a real choice. It's a pressure trap.

Venture Debt sits in the middle. Non-dilutive capital that bridges to the next round, lets you hit the metrics that matter, and protects the valuation you've built.

Venture Debt is built for Australian companies who've raised a Series A or B from an institutional VC fund.

You should be:

- Generating recurring revenue (typically $1M+ ARR for SaaS, or equivalent traction in other models)
- Backed by an institutional VC fund
- At least 6 months of runway remaining when we start the conversation
- AU-based - operations and entity registered in Australia

Anything that extends runway or accelerates the metrics that earn the next round.

- Bridge to your next equity raise without re-pricing
- Fund a strategic senior hire (Head of Growth, VP Sales, senior engineer)
- Accelerate paid acquisition while the unit economics are working
- Open a new market or international entity
- Buy time to negotiate the right terms with the right lead

It's designed to complement equity, not compete with it.

We co-invest alongside top Australian VCs - Blackbird, AirTree and many other AU & NZ funds have endorsed Tractor.

Your existing investors usually welcome it. It extends runway, hits milestones, and protects their position on the cap table.

We'll often have a conversation with your lead investor as part of the assessment process. Standard practice, no surprises.

Three big differences:

- No dilution. Your cap table stays where it is.
- No re-pricing. Your last round's valuation holds.
- Speed. 14 days, not 4–6 months of pitching, DD and legals.

The trade-off: it's debt, so it needs to be repaid.

Best for businesses with a clear path to the next round, or to sustainable revenue that can service the facility.

Term-based, typically 12–36 months. Structured around your runway plan and next-round timing.

Your Capital Strategist will model the right shape with you before anything is signed - no hidden fees, no factor rates, no surprises.