Launching this month, the bank has allocated $150 million (AUD 227 million) to lend between $6.6 million and $19.8 million to late stage venture capital-backed companies operating in the technology and new economy sectors.
Venture debt forms an attractive alternative to equity investment for high-growth companies, as it offers a non-dilutive form of capital that preserves ownership stakes without the need to forego additional equity.
Compared to traditional bank loans, venture debt can also be delivered quicker and typically with more favourable repayment terms.
