Ethan Singer
Podcast appearances as guest
Episode 4 - Interview with Ethan Singer
In this episode, I will talk with Ethan Singer from Mighty Partners.
On the podcast
Mighty Partners launched about three years ago as Fundable, a short-term bridging lender, and rebranded after raising a new venture debt fund for Australian growth businesses.
Mighty Partners provides only debt: loans of up to three years, into the millions, with options such as interest-only periods and flexible drawdowns.
Borrowers must have an Australian entity with revenue, at least 50,000 a month in recurring revenue (more for longer loans) and a minimum cash runway; underwriting looks at about 30 metrics.
Mighty Partners' lending process takes about two weeks on average.
Mighty Partners' average loan is about 550,000.
Venture debt is about 2–4% of annual venture capital volume in Australia, against about 16% in the US over the last five years.
Australia's financial services sector lags the US by eight to ten years.
Founders often use Mighty Partners' debt to top up an equity round, for example raising four million in equity and one million in debt to reduce dilution.
Negotiating Mighty Partners' new warehouse facility took three to four months, much longer than its equity raise.
Debt suits companies with predictable revenue that know what each dollar spent will return; it does not suit experimentation.