Venture Debt Financing
At Rixon Capital, we empower Australian SMEs to achieve their growth ambitions through a tailored, non-dilutionary venture debt financing offering. With decades of combined experience in private credit and a proven track record in high-yield, non-dilutive lending, we understand the unique challenges and opportunities faced by high-growth companies.
We provide flexible funding solutions designed to fuel expansion while preserving ownership. The focus is on helping high-quality startups and emerging corporates that require additional funding to accelerate their growth. Our commitment is to partner with businesses ready to scale, offering capital that supports sustainable development without compromising equity.
Venture debt financing is a specialised form of debt capital designed to support startups and high-growth companies that require flexible funding beyond traditional equity investment. Unlike conventional loans, venture debt provides growth capital to businesses that might not yet qualify for standard bank finance but demonstrate strong potential and scalability.
This form of financing allows businesses to access vital capital to extend their operational runway, invest in innovation, and enter new markets, all while maintaining control over their company. By bridging the gap between equity rounds, venture debt plays a crucial role in the financial ecosystem, enabling businesses to grow confidently and strategically.
Notably some venture debt offerings require the borrower to concede equity in the form of options, warrants, or other instruments. The Rixon Capital funds are explicitly prohibited from accessing founder equity and are focused purely upon delivering a debt funding solution.
Rixon Capital delivers bespoke venture debt solutions that cater specifically to the individual needs of each business. We recognise that no two companies are the same, so our financing structures are flexible, allowing for customised terms, repayment schedules, and loan sizes that fit your growth trajectory. Whether you’re looking to fund a new product launch or expand your team, we design solutions that align with your business plan.
One of the core advantages of venture debt is accessing essential growth capital without materially diluting your ownership stake. The added attraction of Rixon Capital’s venture debt products is there is no dilution of ownership at all, enabling you to raise funds while retaining full economic control of your business. This non-dilutive approach ensures that founders and existing shareholders retain maximum equity value, preserving the upside potential as your company scales.
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Facility Size
Our venture debt facilities typically range from $1 million to $20 million, providing sufficient capital for a variety of growth stages. Whether you require a bridging loan facility or a substantial wholesale funding facility for rapid expansion, Rixon Capital has the capacity and flexibility to meet your financing requirements.
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Term Length
Loan terms generally range between 12 and 36 months, designed to complement your business cycle and expected milestones. These tailored durations provide a manageable repayment schedule that supports sustainable growth without undue financial pressure.
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Geographic Focus
While we primarily serve Australian SMEs and emerging corporates, our mandate extends to the New Zealand market. We focus on supporting businesses operating within Australia’s dynamic innovation ecosystems and beyond, fostering growth across multiple sectors.
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Security
Rixon Capital structures venture debt with clear security arrangements tailored to the borrower’s asset base and risk profile. While some facilities may require asset-backed security, we also offer unsecured options depending on your company’s financial strength and growth outlook, ensuring a balanced and fair approach. The underlying security profiles reflect the separate lending mandates of the two Rixon Capital funds.
Growth Initiatives
Use venture debt to accelerate your growth initiatives, such as product development, technology upgrades, or expanding into new markets. This funding empowers you to scale operations swiftly while maintaining financial flexibility.
Working Capital
Access additional working capital to manage daily operational costs and maintain business continuity. Venture debt can support inventory management, payroll, and other essential expenses that keep your business running smoothly during growth phases.
Acquisitions
Finance strategic acquisitions or partnerships that strengthen your competitive position. Rixon Capital’s venture debt solutions can provide the necessary capital to seize timely opportunities without sacrificing equity.
Eligibility Criteria
To qualify for our venture debt financing, your business should demonstrate a scalable model with clear growth potential, a track record of revenue generation or a credible pathway to profitability, and operate within industries aligned with our expertise. We focus on companies poised for expansion and innovation.
Application Process
Our straightforward application process begins with an initial discussion to understand your requirements, business model, and asset & cashflow profiles. Following this, we undertake initial due diligence before structuring a customised financing proposal in the form of an Indicative Term Sheet. Once terms are agreed upon, confirmatory due diligence, documentation, and internal approvals are progressed with funds swiftly disbursed to support your business objectives.
Support and Partnership
Beyond financing, Rixon Capital acts as a committed partner in your growth journey. We offer ongoing support, transparent communication, and flexible solutions designed to evolve with your business. Our relationship is built on trust, with a shared focus on long-term success.
If an interested borrower is not a fit with either Rixon Capital fund mandate, the team will proactively refer the borrower on to other lenders or advisors who may be able to assist with a solution.
Ready to explore venture debt financing tailored for your business? Fill in our enquiry form
to schedule a conversation and discuss how Rixon Capital can support your growth ambitions.
All rights reserved. Fund investment available to sophisticated and professional investors as defined in section 708(8) and 708(11) of the Corporations Act 2001 respectively.
Rixon Capital Pty Ltd (ABN 65 655 776 533) is an authorised representative (Australian Financial Services Representative Number: 001298795) of Rixon Asset Management Pty Ltd (ACN 664 901 866 AFSL 546029).
All rights reserved. Fund investment available to sophisticated and professional investors as defined in section 708(8) and 708(11) of the Corporations Act 2001 respectively.
Rixon Capital Pty Ltd (ABN 65 655 776 533) is an authorised representative (Australian Financial Services Representative Number: 001298795) of Rixon Asset Management Pty Ltd (ACN 664 901 866 AFSL 546029).
