Australia's OneVentures hits $32m first close on venture debt fund

The 1V Venture Credit Fund was launched last year with a view to raising A$100 million. It will make investments of up to A$5 million in about 40 expansion-stage technology companies across the next five years. Targeted companies will have strong revenue streams and ambitions to grow their businesses or diversify funding sources during capital raising rounds. The fund is currently preparing its first investment.

“We have been delighted with the positive response we have received from investors, which include many of Australia’s largest family offices and high net worth investors,” Michelle Deaker (pictured), a managing partner at OneVentures, said in a statement. “The fund is an attractive way for investors to get exposure to Australia’s most exciting and fastest growing technology companies at lower risk, with a strong and stable income yield.”

Venture debt is still an emerging product in Asia Pacific but considered prospective for expanded uptake given its popularity in more established markets. In the US, for example, venture debt is estimated to represent as much as 25% of total funding for later-stage technology companies. Deaker says that in addition to offering investors a lower risk profile, the funding option helps start-ups raise capital faster and with less ownership dilution.

OneVentures has sought to access venture debt expertise by launching the fund in partnership with a credit division of Israeli technology investor Viola Group. This is said to be the first ever Australia-Israel venture partnership. The firm has also made a number of hires, including Nick Gainsley, a venture debt specialist at UK-based Kreos Capital, who will lead 1V Venture Credit Fund as a principal with support from the Viola credit team.

Separately, OneVentures has promoted Grant Chamberlain, who joined the firm as a principal in 2017, to the level of partner. Chamberlain previously served as Australian head of M&A and financial sponsors at Bank of America Merrill Lynch. Meanwhile, David Grose, formerly a private markets director at Hermes Investment Management in the UK, has been hired as a principal covering operations and finance.

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• Topics
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• Growth capital