Venture Credit 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 a longer capital runway, allowing companies more time to achieve important milestones before a subsequent round of financing. In the same way as our equity investments, the OneVentures team will continue to provide insight, network and strategic knowledge to the investee company.
OneVentures’ newest venture credit fund follows on from the success of our earlier venture credit funds, and the growing awareness and adoption of venture 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 with the need for diluting equity.
The Fund is focused on rapidly growing companies that are differentiated through technological innovation, with strong revenue growth. In particular, OneVentures is looking for companies operating in the SaaS, fintech, marketplace and e-commerce spaces, who are led by exceptional founding teams and generating >$3-5M in revenue
The 1V Venture Credit Fund reached final close on 30th June 2020 raising $80M. The Fund is a collaboration with Viola Credit of Israel and will provide circa $120M in debt financing for high-growth technology companies predominantly in Australia and New Zealand.
The Fund is focused on rapidly growing companies that are differentiated through technological innovation, with strong revenue growth. In particular, OneVentures is looking for companies operating in the SaaS, fintech, marketplace and e-commerce spaces, who are led by exceptional founding teams and generating >$3-5M in revenue.
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.
In the same way as our equity investments, the OneVentures team will continue to provide insight, network and strategic knowledge to the investee company.
Venture credit (also referred to as venture 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 a longer capital runway, allowing companies more time to achieve important milestones before a subsequent round of financing.
BSc(Hons), MSc, PhD
CA, BBA (Hons)
BCom / CA
“The 1V team have been part of the journey since our 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 our 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.”
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.
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).
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.
Pitching to investors
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:
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.
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 (through the 1V Venture Credit Fund), 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.
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!
Learn about our other investment pillars below.
Unlocking the full potential of tech and tech enabled scale-up companies.
Specialising in therapeutics, devices and diagnostics at or near clinical development, with a clear commercial, regulatory and reimbursement pathway.
That’s why we apply a Responsible Investment filter to all prospective portfolio companies, especially seeking those that demonstrate strong ESG principles.
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