Investment pillar: Growth Credit
Growth Credit Financing for Scaling Technology Companies
Debt funding to support the continued growth of venture-backed businesses, with the support and resources of a highly experienced Venture Capital Firm.
What is growth credit?
How it works
Growth credit is a flexible form of debt funding tailored to high growth technology companies.
You can use it like equity to invest for growth but pay interest rather than giving up equity in your business.
Benefits
- Lower cost than equity finance
- Minimal dilution
- Avoid setting a valuation
- Retain control – no voting rights or board director
- Value add from an institutional investor
Use cases
- Growth capital with limited dilution
- Extend runway to next funding round
- Cash buffer to reach profitability
- Credit line for unforeseen spend
- Acquisition finance
- Manage working capital swings
Is it right for you?
Take the quiz to find out if credit is a viable funding option for your company.
Who is it for?
Our approach
What we provide
- Facilities of $1 – $20M
- Funding can be funded upfront or tranched over time
- Amortising loans over 3 – 4 years; interest only periods available
- Tailored to your business and covenant light
- No Director Guarantees
- Minimal dilution via warrants – typically equating to less than 0.5% of the cap table
It’s important that you select a credit provider that’s the right fit for you and understands your business.
Products
We provide Venture Credit and Growth Credit funding, supporting founders and businesses at pivotal stages on their scaling journey.
Venture Credit v Growth Credit
Venture Credit
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Tech Company
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Series A Minimum
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$3M+ ARR
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VC Backed
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High growth
Growth Credit
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Tech Company
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Later stage (beyond Series A)
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$7M+ ARR
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VC or Institutional Backing
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High growth; Min 30% p.a.
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Lower cost with wider structuring options compared to Venture Credit
Growth Credit Portfolio Companies
Testimonials
William On
Co-founder & Co-CEO, Shippit
Being part of the 1V family has opened opportunities across the Australian investor community and their commitment to helping founders grow has been unparalleled – not only from a learning & development perspective but also connecting founders together in various stages of growth.
Mina Nada
CEO, Zoomo
Working with OneVentures and their partners Viola Credit to secure venture credit funding to support Zoomo‘s Series A round was a pleasure – Nick and the team were great to work with and the process was rigorous but fast.
Ashley Fenton
CFO, OneVue
Thanks for supporting OneVue when we needed it.
We are a perfect case study for a situation that needed, in this case, short term assistance with the flexibility to have a longer-term profile. And it has been a successful outcome for all. This loan has been a testament to OneVentures’ ability to respond quickly and with flexibility and provide a product that works really well for small to medium businesses.
Josh Foreman
CEO & Founder, InDebted.
Collaborating with OneVentures has been a remarkable journey. They understand our objectives and move quickly to execute our plans. It’s evident that they are committed to a long-term partnership, standing with us every step of the way as true allies.
Our decision to raise debt aims to support our global growth strategy which includes strategic M&As, and further investment in our R&D function (resourcing and innovation). We want to prioritise minimal equity dilution to ensure a lower long-term cost of capital. We sought a financing solution that reflects clear investor expectation (in this case, a defined repayment schedule and interest payments) and a fast execution.
We structured the debt in tranches to minimise interest payments and maintain control over our cash flow, while allowing us to scale our financing up or down in response to uncertain M&A outcomes.
Growth Credit Investment Team
Dr Michelle Deaker
Founding & Managing Partner
| Location: Sydney, AU
Michelle is a Founding Partner and the Managing Partner at OneVentures. She serves on the investment committees of OneVentures funds and has led the capital raising activities for the firm. Her focus today is in the technology growth practice, though she has also worked extensively across both healthcare and technology investments.
With over 25 years of experience building and investing in high-growth technology companies in Australia and the US, she has a proven track record in global business expansion and Australian R&D. Michelle has led or co-led and been a Director of key investments in companies such as Employment Hero ($2B valuation, 13x ROI, Returned 1.5x Fund II), Phocas (10x EV growth), Smart Sparrow (acq. Pearson Learning), My Mobile Data (acq. ASX: AYS); Hatchtech (Lic. to NYSE: RDY) and unicorn Vaxxas. She chaired the board of Employment Hero until December 2023 and continues to serve on its board, as well as the boards of Phocas and Buildkite.
A current member of the Reserve Bank of Australia’s Payment Systems Board, Michelle is also a former board member of Australia’s National ICT Centre of Excellence (NICTA, now Data61), Seven West Media (ASX: SWM) and served on the NSW Government’s Digital Economy Taskforce.
In the lead up to founding OneVentures, Michelle worked for a leading family office on their alternative investments, served as an entrepreneur in residence at Southern Cross Venture Partners and was an angel investor. Prior to her investment career, Michelle was a business entrepreneur and founder, including one of Australia’s first fintech companies, E Com Industries (www.giftvouchers.com) (acq. LSE: ReD, 4.6x, 70% IRR), IT services business, Networks Beyond 2000 and a tertiary tutoring business.
Michelle is a member of the Australian Institute of Company Directors and Chief Executive Women (CEW). She was a founding advisory board member of Head Over Heels (now Apropela), supporting women entrepreneurs, and served on the advisory board of the Indigenous fund Ochre Ventures.
In addition to these roles, she lectures in the Australian Investment Council’s Foundations of Private Capital Venture Capital Course and is a Co-Founder of WinVC, a non-profit women-led initiative supporting the career trajectory of women investors in venture capital.
Michelle holds a Bachelor of Science (Honours), a Master of Science and a PhD in Applied Science.
| BSc(Hons), MSc, PhD
Nick Gainsley
Partner & Director
| Growth Credit
| Location: Sydney, AU
| BSc(Hons), AMCT
Justine Carzino
Investment Director
| BComm, CFA, CA | Location: Melbourne, AU
| Growth Credit & Growth Equity
Justine is an Investment Director at OneVentures and is responsible for the new Victorian Growth Fund, focusing on providing Venture Credit to Victoria’s most exciting start ups.
Justine returned to Australia in late 2021, after 3 years working in Tokyo advising life science and beauty companies on cross border M&A. She brings her wealth of knowledge in M&A Advisory, her passion for entrepreurship and her experience with capital raising to the Venture Credit team. She is a valued advisor and is driving the awareness and adoption of Venture Credit (also known as venture Debt) in the Australian market.
Justine leads the investment team for the Victorian Growth Fund. She is responsible for identifying and assessing potential investments, promoting the Fund and managing the partnership with the Victorian Government and other stakeholders. She is passionate about investing in startups and growth companies generating jobs and innovation for Victoria and broader Australia, and pursuing ideas that will benefit Australians.
Justine holds a Bachelor of Commerce from the University of Melbourne, majoring in Accounting and Finance. Justine is a Chartered Accountant and Chartered Financial Analyst. In her spare time, she has pursued qualifications in viticulture and wine, and recently completed Wine & Spirits Education Trust – Level II in Wine.
Kate Madden
Investment Director
| Growth Credit
| Location: Sydney, AU
Kate joined OneVentures in 2019 with the launch of the firm’s first credit fund. She focuses on Growth Credit investments – sourcing investments, conducting due diligence and supporting portfolio companies.
She is a Board Observer for InDebted and Dataweavers and previously for Coassemble and EatClub.
Before moving to Australia, Kate spent 3.5 years at PwC in Dublin, gaining experience in the Business Restructuring (Deals) and Management Consulting departments. In Business Restructuring, she worked on turnarounds, administrations and liquidations. In Management Consulting, she worked with PE-sponsored businesses to drive operational improvements through digitisation. Kate gained lending and portfolio management experience at KKR within their private credit arm.
Kate holds a Bachelor of Commerce in Accounting and Finance from the University of Limerick and is a Chartered Accountant. She serves on the Australian Investment Council’s DE&I committee and actively mentors early-stage founders through accelerators and support platforms.
| CA, BBA (Hons)
Portfolio Board Roles
Ryan O’Dea
Investment Manager
| Growth Credit
| Location: Sydney, AU
Ryan is an Investment Manager on our Growth Credit team and is responsible for deal sourcing, evaluating opportunities, executing transactions and assisting portfolio companies in scaling and securing follow-on funding where appropriate.
He has worked on deals with companies such as Cascade and Biza.
Previously, Ryan worked at Wayflyer, a venture-backed fintech scale-up providing revenue-based financing to eCommerce brands. He led business operations and new product development, helping scale the company from 30 to 300 employees. Before that, he advised consumer goods and financial services clients as a consultant with McKinsey & Company.
Ryan holds a Bachelor of Science in Economics and Finance from University College Dublin.
| B.Sc. Economics & Finance
Shawn Li
Investment Analyst
| Growth Credit
| Location: Melbourne, AU
Shawn plays a key role in the Growth Credit team, contributing across the entire deal cycle through portfolio analysis, due diligence and guiding transactions at every stage.
Before joining OneVentures, Shawn worked in the strategy team at Accenture, focusing on growth, decarbonisation, M&A and technology. Prior to that, he worked at Uber as an Operations Associate, managing consumer behaviour and lifecycle across the Rides, Eats and CommOps teams.
Shawn holds a Bachelor of Commerce from the University of Melbourne, majoring in Economics and Finance. He represented his university in international case competitions in Norway and Thailand, providing strategic advice to multinational companies.
| BCom (Economics & Finance)
Actively Investing
Growth Credit Fund VI
OneVentures’ newest growth credit fund follows on from the success of our earlier growth credit funds, and the growing awareness and adoption of growth credit in Australia. Like the previous funds, this fund will continue to provide a compelling risk / return profile for investors, whilst enabling founders access to capital without the need for diluting equity.
The fund is providing facilities from $1-20M, focused on rapidly growing companies based in Australia and New Zealand that are differentiated through technological innovation with strong revenue growth. In particular, OneVentures is looking for companies operating in the SaaS, fintech and marketplace spaces, who are led by exceptional founding teams and generating >$3-5M in recurring revenue.
OneVentures’ new credit fund provides a compelling risk / return profile from an asset class which is experiencing increased adoption in a growing market by a manager with unrivalled experience and proven track record.
KEY FEATURES
Actively Investing
VGF Credit Fund
In partnership with Invest Victoria, the VGF Credit Fund is a A$30M credit fund focused on providing debt financing to high growth Victorian based technology companies.
The fund was launched under the Victorian Government’s VGF programme. The fund is focused on rapidly growing companies that are differentiated through technological innovation, with strong revenue growth. The fund provides facilities of $0.5-4M to companies generating >$3M in revenue
Funds Allocated
Growth Credit Fund IV
The OneVentures Growth Credit Fund IV reached final close on 20 April 2020 raising $78M. The fund is a collaboration with Viola Credit of Israel, providing circa $120M in debt financing for high-growth technology companies predominantly in Australia and New Zealand.
The fund focused on rapidly growing companies that are differentiated through technological innovation, with strong revenue growth. In particular, OneVentures looked for companies operating in the SaaS, fintech, marketplace and e-commerce spaces, led by exceptional founding teams and generating >$3-5M in revenue.
Criteria for Entrepreneurs
To fit our mandate, your company must be:
- Domiciled in Australia or New Zealand, or with strong connections to Australia
- A high-growth technology company generating >$3-5M recurring revenue
Investment process
A pathway to partnership.
01. Apply
Do you believe your company is a good fit to our investment mandate?
We’re excited to learn more about your business and what you are building. Apply now, and one of our team will be in contact.
02. Investment Team Screening
Our investment team manages a high volume of new opportunities and takes the process of assessing each and every one seriously.
We ask that you give us some time to respond (we aim to respond to all enquiries within two weeks).
03. First meeting
If we feel your opportunity is a good fit to the mandate for any of our funds, we will schedule a meeting with one or more members of our investment team to learn about your company, the technology and product, and the leadership team. This first meeting may be via video conference or in person.
04. Preliminary due diligence
If our first meeting goes well, we will appoint a Deal Lead who will be your primary liaison with OneVentures and undertake some preliminary due diligence to understand more about your company. During this period, we will often ask for additional information and we may meet with you again.
At this stage we will typically focus on:
- People – We look for quality, experienced management teams with ambition.
- Traction to date – We seek to better understand your revenue to date including quality of customers, and assess your projected financial performance
- Product / Technology – We seek to understand your product offering including its features, to assess the value to your customers. How unique is your offering?
- Market – Does your product have strong market pull? Is the market attractive, in terms of size and access?
- Competition – How are you placed relative to competition? Are there strong barriers to entry?
- Business metrics – Assess your business metrics and your customers. For example, what is the cost of customer acquisition? What is the lifetime value of the customer? What is the average revenue per user? Are your customers sticky?
- Financing need – How can debt be a useful to you and does it achieve your objectives? What structure is best for you.
05. Terms
Following our preliminary due diligence process, we will present the opportunity to our investment committee. Subject to a positive outcome we will provide you a term sheet for discussion.
05. Confirmatory Due Diligence and Investment Committee Meeting
Assuming we agree terms, we now move into a more detailed due diligence process. We will provide you with a detailed list of the due diligence materials we require access to and will ask you to assemble them in a secure data room.
We will meet many times during this period and will require access to additional documents and information. Activities may include meeting with all the members of your team and visiting your premises, interviews with customers and partners, and discussions with other investors and potential acquirers of your business.
Our aim during this process is to independently confirm the information, claims, projections and assumptions you have provided to date.
In relation to debt financing, this step is typically streamlined and usually results in a quicker investment than with equity financing.
At the conclusion of our due diligence process we will present to our Investment Committee for final sign off the transaction.
06. Legal documentation
For a credit investment, we will run the legal documentation process in parallel to the confirmatory DD stage.
This stage involves the drafting and finalising of legal documents for our investment. Documents include a loan agreement, warrant agreement and security documentation. During this period, we will each be represented by our own legal counsel who will be heavily involved.
When the due diligence process is completed and the documents are agreed and signed, we will be ready to fund the first tranche of our investment subject to the terms agreed. Congratulations – our partnership has formally commenced!
Apply for
Growth Credit Investment
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