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.
- 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
- 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?
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.
We provide Venture Credit and Growth Credit funding, supporting founders and businesses at pivotal stages on their scaling journey.
Venture Credit v Growth Credit
Series A Minimum
Later stage (beyond Series A)
VC or Institutional Backing
High growth; Min 30% p.a.
Lower cost with wider structuring options compared to Venture Credit
Growth Credit Portfolio Companies
Co-founder & Co-CEO, Shippit
The 1V team have been part of the journey since Shippit‘s inception – from pitching at WestFest in 2016 and Michelle handing out an investors award, to participating in our Series A it’s been a great vote of confidence having the team on the cap table.
Nick has been a great addition as a shadow board advisor and has been able to bring his vast experience in scaling European companies to Australia. 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.
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.
They’ve been valuable partners in providing ongoing support and advice as we continue to scale, and their partnership with Viola in Israel added a combined level of expertise and capability which was attractive for us as we expand internationally.
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.
Growth Credit Investment Team
Dr Michelle Deaker
Founding Partner & Managing Director
| BSc(Hons), MSc, PhD | Location: Sydney, AU
Dr Michelle Deaker is a Founding Partner & Managing Director of OneVentures and has been primarily responsible for the foundation of OneVentures firm and capital raisings of OneVentures Funds. The firm now has over $700M in funds under management. Michelle serves on the investment committee of OneVentures three main Funds, leads the technology practice within the firm and is responsible for investor relations managing the supervisory boards of OneVentures funds.
Michelle has over 20 years experience in the development of high growth technology companies in Australia and the US, has served on the boards of large and small listed and unlisted companies and has a strong background in Australian R&D and expertise in global business expansion. She has negotiated technology transfer contracts with research institutions; established financing syndicates with Australian, Asian and US investors; chaired the boards of several high growth companies; supported early breakthrough commercial contracts; leveraged her extensive networks for the benefit of OneVentures companies; and negotiated both financing and exit transactions.
Michelle established OneVentures in late 2006, coming into the venture capital industry as a successful IT industry business owner, entrepreneur and subsequently angel investor. The Company she founded in 1999, E Com Industries (www.giftvouchers.com), became the leading prepaid card and electronic voucher provider in Australia, servicing over 100 major retail brands including Coles Myer and Woolworths, managing $700M in Australian retail liability and eventually expanding operations into the United Kingdom, South Africa and New Zealand. E Com was acquired by UK publicly listed company, Retail Decisions, in 2005, in a transaction returning to investors 4.6x capital and an average IRR of 70%. Notably, E Com industries was one of only a handful of Australian companies that successfully migrated the dotcom boom and crash through to a successful outcome for investors. Prior to E Com Industries, Michelle established IT enterprise business, Networks Beyond 2000.
Michelle holds a Bachelor of Science (Honours 1st class), Master of Science and a PhD (Applied Science). She is a member of the Australian Institute of Company Directors and Chief Executive Women (CEW).
Portfolio Board Roles
In the news
| BSc(Hons), AMCT | Location: Sydney, AU
Nick Gainsley is a Partner at OneVentures and leads the Growth Credit practice of the firm. Nick is committed to ensuring that companies in Australia can access alternative forms of capital by bringing his extensive global experience with debt and financing to the local market.
As one of the leading pioneers of Growth Credit in Australia, Nick is in high demand as a keynote speaker and conference panellist. He regularly appears in the media as an expert on Growth Credit and alternative debt financing. For media and speaking enquiries, please contact us.
Nick is a keen skier and loves to travel the world – with his young family in tow. Being a Brit he used to long haul and is looking forward to the direct Sydney-London flight in the coming years. He loves to ski steep off-piste terrain however he’s been forced to recalibrate to “family friendly” black runs.
Nick brings over 15 years of debt experience both in direct lending and advisory, in Europe and Australia. He has nearly 10 years of Growth Credit experience having led investments to over 100 high growth technology companies across 11 countries.
At OneVentures, he serves on the Investment Committee of the 1V Venture Credit Fund IV and the OneVentures Growth Fund V.
Prior to joining OneVentures in May 2019, Nick was based in the UK and was a Principal at Kreos Capital (now part of Blackrock), Europe’s largest growth debt fund. His experience there covered deal origination, execution and portfolio management for a significant number of transactions across European markets. He has wider sector experience across technology sub-sectors including FinTech, software, cyber security, hardware, e-commerce/DTC, AdTech and life science, investing in both private and public companies.
Prior to this Nick was a Manager at KPMG in London within its Debt Advisory team, where he was involved in managing and advising on a range of debt transactions from mid-market to large cap. Transaction experience covered leveraged finance, corporate refinancing, capital market issuance and strategic financing advice.
Nick is currently a mentor at Stone & Chalk and the AIC women mentorship programme.
Portfolio Board Roles
In the news
19 September 2022
Venture Credit in Australia — Our first report alongside the Tech Council of Australia
18 November 2021
E-bike subscription service Zoomo raises $60M Series B to disrupt last-mile delivery
| BComm, CFA, CA | Location: Melbourne, AU
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.
| CA, BBA (Hons) | Location: Sydney, AU
Kate joined the investment team at OneVentures in 2019 with launch of our first credit fund. Before moving to Australia, she spent four years at PwC, Dublin where she qualified as a Chartered Accountant. At PwC she gained diverse experience working with the Business Restructuring (Deals) and Management Consulting departments.
While in Business Restructuring, she worked on administrations, liquidations, and business turnarounds. During her time in Management Consulting, she was embedded within the portfolio company of a PE sponsored business to drive operational improvements through digitisation. Kate also spent some time in KKR within the private credit arm, which gave her exposure to lending and portfolio management, helping to round out her credit experience.
Kate is a motivated and analytical individual with the ability to originate deals, complete due diligence, monitor portfolio companies and she holds several board observer roles. She has built a strong network and is an active member of the Australian Venture Capital community since joining the firm in 2019. She likes to give back to the community, providing mentorship via accelerators and platforms aimed at supporting underrepresented founders and she holds a seat on the Australian Investment Council DE&I committee.
Portfolio Board Roles
| B.Sc. Economics & Finance | Location: Sydney, AU
Ryan is an Investment Associate at OneVentures working in the Venture Credit team. Ryan is passionate about start-ups and is excited to work with founders around Australia.
Prior to joining OneVentures Ryan worked in Wayflyer, a venture backed Fintech scale-up that provides Revenue Based Financing to eCommerce brands. At Wayflyer Ryan was responsible for Business Operations & New-Product Development and helped the founders scale the business from 30 employees to 300.
Before Wayflyer, Ryan was a consultant with McKinsey & Company. At McKinsey, Ryan worked in the Dublin and London offices predominantly advising consumer goods and financial services clients on strategy and organisational issues.
Ryan holds a B.Sc. Economics & Finance from University College Dublin, outside of work he loves to swim and travel.
| BCom (Economics & Finance) | Location: Sydney, AU
Shawn is an Investment Analyst at OneVentures and sits within the Venture Credit practice of the firm. He is excited to help Australian startups shape the future and is particularly interested in companies that change consumer behaviour.
With 3+ years of experience working across strategy and operations, Shawn enjoys bouncing between blue sky thinking and working together with companies to solve their most pressing issues. Prior to OneVentures he was a part of the Strategy team at Accenture, working across public and private sectors covering technology, retail, financial services, energy and logistics. He also has experience at Uber, delivering on projects across Rides and Eats.
Beyond the world of tech and startups, Shawn is passionate about social impact, development economics and music. He plays a variety of instruments and occasionally performs, you might even catch him busking on the streets of Melbourne. He hopes to bring the lens of impact, improving welfare and good music to investing – cue the tunes and let the good times roll.
Shawn brings experience across strategy and operations covering a variety of industries and is constantly seeking to learn about new sectors and how technology is disrupting it.
At OneVentures, he sits as a part of investments team for 1V Venture Credit Fund IV and the VGF. He brings a fresh perspective to analysing companies, performing due diligence and supports the team across the deal lifecycle.
Prior to joining OneVentures, Shawn was a Strategy Analyst at Accenture where he worked across a range of sectors with a focus on technology. He has helped clients with growth strategy, M&A, decarbonisation, economic research and project management.
He was also previously an Operations Associate at Uber and worked across Uber Rides, UberEats and Community Operations. He has conducted analysis on consumer behaviour, lifecycles, retention and feedback. Shawn received a BCom from the University of Melbourne majoring in Economics and Finance. He has represented the university internationally at case competitions in Norway and Thailand, providing advice to multinational companies.
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. Having completed first close, Fund VI is on track to meet its target of $150M.
Launched credit product in 2019 with highly experienced team.
The fund is looking for companies with strong product-market fit, operating in the SaaS, fintech, marketplace and e-commerce spaces, who are led by exceptional founding teams and generating >$3-5M in revenue.
Providing debt facilities of $1-20M.
In the same way as our equity investments, the OneVentures team will continue to provide insight, network and strategic knowledge to the investee company.
Less dilutive and cheaper source of growth capital than traditional equity Venture Capital.
Growth credit (also referred to as debt) is attractive to companies seeking a less dilutive financing option, or companies looking to incorporate debt within the funding mix of their capital raising round. It provides further growth capital allowing companies more time to reach profitability or achieve important milestones ahead of next financing round or exit.
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
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
A pathway to partnership.
Do you believe your company is a good fit to our investment mandate?
Our preference is for a warm introduction to be made through our network. You may know someone we’ve worked with before, otherwise the team is active at industry events – so come and say hello!
If this is not possible, please submit an application.
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.
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!
BROADENING THE SCOPE OF IMPACT
There are many different types of companies, so we provide many different solutions for raising capital.
We believe that the world’s most transformative companies will be those that benefit society.
That’s why we apply a Responsible Investment filter to all prospective portfolio companies, especially seeking those that demonstrate strong ESG principles.
Growth Credit Investment
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