'Too spicy for banks, not spicy enough for VC': Tractor hits $100m milestone
Alternative lender Tractor targets has now supported 250 companies since its launch just over four years ago.
Tractor Ventures has found its niche in the narrow gap between traditional banking and venture capital, surpassing $100 million in lending to tech companies in just four and a half years by backing businesses that fall through the cracks of conventional finance.
"It's effectively people who aren't spicy enough for venture, but too spicy for banks," co-founder and head of capital and new markets Matt Allen told Capital Brief this week, explaining Tractor's positioning in the alternative lending market.
The Melbourne-based lender has supported over 250 companies since launch, with an average loan size of nearly $400,000 to businesses generating $2 million to $20 million in annual revenue. Allen said these are "not startups" but "scale-ups heading towards profitability and growing."
The milestone puts Tractor ahead of some venture firms and comes as Tractor expands beyond its original growth capital product to launch working capital lines of credit and R&D lending. Allen said this was a response to founders shifting from aggressive expansion to "managing cash flow state" in the current uncertain environment.
