Introduction
In this episode of the DevReady Podcast, host Andrew Romeo speaks with Matt Allen, Head of Capital & New Markets at Tractor Ventures, about building sustainable startups, navigating investment options and leveraging non-dilutive funding to scale responsibly. Matt shares his evolution from software engineer to angel investor and venture leader, exploring how modern AI-driven tools have reshaped his technical and financial perspective. He reveals how Tractor Ventures is helping founders grow without losing equity or control, redefining how startups fund long-term success.
From Developer to Investor – Matt Allen’s Journey
Matt began his career as a self-taught software developer in Sydney, running startups and a hosting company before moving into tech recruitment and later joining Amazon Web ServicesAWS is an acronym for Amazon Web Services. This is Amazon's cloud computing infrastructure. AWS is similar to Microsoft Azure... (AWSAWS is an acronym for Amazon Web Services. This is Amazon's cloud computing infrastructure. AWS is similar to Microsoft Azure...). At AWSAWS is an acronym for Amazon Web Services. This is Amazon's cloud computing infrastructure. AWS is similar to Microsoft Azure..., he supported founders through the startup and venture capital ecosystem, helping them scale with cloud When referencing computing, the term 'cloud' refers to the generalisation of interconnected computers and services running on the Internet,... infrastructure and early-stage resources. His entrepreneurial mindset, however, led him away from corporate life and towards creating something new, a journey that would ultimately lead to Tractor Ventures.
Lessons from Angel Investing and Early-Stage Startups
Matt shares how his first successful investment in Xero gave him the foundation to become an angel investor, backing startups that built tools for developers. By connecting with startup communities and Blackbird Ventures, he learned that angel investing is about conviction, people and execution, not just technology or spreadsheets. He also realised that sustainable growth comes from founders who understand their customers deeply and can sell beyond their network, not from chasing “unicorn” valuations.
Founding Tractor Ventures – Empowering Sustainable Growth
Inspired by his time at AWSAWS is an acronym for Amazon Web Services. This is Amazon's cloud computing infrastructure. AWS is similar to Microsoft Azure..., Matt saw a gap for tech founders running profitable businesses that weren’t eligible for venture capital or bank loans. Tractor Ventures was built to bridge that funding gap, providing revenue-based, non-dilutive financing to founders with recurring income and high gross margins. Matt explains how Tractor’s credit engine analyses real business data to lend responsibly, helping founders scale without sacrificing ownership or personal assets. This model creates a new category of funding that sits between equity and traditional debt.
Debt vs Equity – Choosing the Right Funding Path
Matt and Andrew discuss when startups should consider debt financing versus equity investment. Debt suits businesses with proven, predictable revenue streams, while equity is better for companies seeking rapid expansion in large markets. Matt advises founders to view customer revenue as the best source of capital, followed by grants and borrowing, since selling equity often dilutes ownership and slows growth. The key, he says, is building a profitable, sustainable business before chasing external capital.
Blending Capital Strategies for Modern Founders
Modern founders, Matt explains, can blend debt and equity to fuel growth without over-reliance on either. Raising equity can take months and distract teams from building products or generating revenue, whereas private credit or revenue-based finance offers faster, flexible solutions. Matt urges founders to calculate the true cost of capital, considering how each choice affects control, growth speed and long-term outcomes.
Market Conditions, Interest Rates and Investment Trends
In closing, Matt highlights how interest rates directly influence startup funding cycles. When rates are low, investors chase higher returns through startups; when rates rise, safer investments like term deposits become more appealing, drying up venture capital. This affects both investor sentiment and founder confidence, reducing risk appetite across the ecosystem. Matt’s insights reveal how macroeconomic factors shape access to capital and underline the importance of resilient, adaptable business models.
Topics Covered
- Matt Allen’s career journey
- The evolution of Tractor Ventures
- AIArtificial Intelligence (AI) is a very large and broad spectrum of technologies which most people would be familiar with through... and modern development tools
- Lessons from angel investing
- Debt vs equity funding
- Blending capital strategies
- Founder-led sales and sustainable growth
- Interest rates and market trends
- Building resilient startups
- The future of startup funding
Important Time Stamps
- Why This Investor Went Back to Coding (0:06 – 3:55)
- The Developer Who Gave Up Coding to Empower Startups (3:56 – 10:48)
- How a Bet on Xero Kickstarted Matt’s Angel Investing Journey (10:49 – 15:06)
- The Truth About Angel Investing: It’s All About People (15:07 – 20:16)
- How Tractor Ventures Helps Founders Grow Without Giving Up Equity (20:17 – 29:05)
- Debt vs Equity: The Smarter Way to Fund Startup Growth (29:06 – 36:58)
- Matt Allen: Stop Selling Shares, Start Growing Your Business (38:59 – 40:54)
- Why High Interest Rates Cool Down Innovation (40:55 – 44:13)
Key Takeaways from This Episode
- Founders should understand the true cost of capital before raising funds.
- Non-dilutive finance offers a sustainable alternative to venture capital.
- Angel investing is about people, conviction and problem-solving, not just spreadsheets.
- Interest rates influence both investor behaviour and founder confidence.
- Success comes from sustainable growth, not chasing unicorn status.
Useful Links
FAQs
Who is Matt Allen?
Matt Allen is the Head of Capital & New Markets at Tractor Ventures. He’s a seasoned technologist, angel investor, and startup mentor with over two decades of experience in software development, venture funding, and business growth.
What is Tractor Ventures?
Tractor Ventures is an Australian funding company that provides non-dilutive, revenue-based financing to tech businesses. Unlike traditional venture capital, Tractor Ventures helps founders grow sustainably without giving up equity or personal assets.
What does Matt Allen discuss in this DevReady Podcast episode?
In this episode, Matt shares his journey from being a self-taught software engineer to becoming a successful angel investor and venture leader. He explains how Tractor Ventures empowers founders to scale sustainably, the balance between debt and equity funding, and why understanding your customers matters more than chasing unicorn status.
What is non-dilutive funding and why is it important?
Non-dilutive funding allows founders to access capital without giving up ownership or equity in their company. It’s ideal for startups with proven revenue models that want to scale responsibly while maintaining control over their business.
What are ‘rockets’ and ‘tractors’ in the startup world?
Matt uses the analogy of “rockets vs tractors” to explain two types of startups:
- Rockets are high-risk, high-growth companies chasing massive returns but with a high chance of failure.
- Tractors are reliable, profitable businesses that grow steadily and sustainably over
How does Tractor Ventures differ from traditional VCs or banks?
Traditional VCs expect massive growth and often require equity, while banks usually need collateral. Tractor Ventures takes a different approach — using real business data and recurring revenue to offer flexible loans that align with a company’s actual performance and growth stage.
