OneVentures is seeking to raise $150 million for its second venture credit fund.
The Sydney-based venture firm closed its first credit fund at $80 million at the end of June 2020. The 1V Venture Credit Fund has now provided funding to 15 companies including e-bike business Zoomo, digital communications debt collection business InDebted, retail data technology business HIVERY, edutech company Edrolo, fulfilment business shippit and healthtech company Eucalyptus.
OneVentures partner Nick Gainsley, who leads the firm’s credit practice, believes Australian founders are becoming more familiar with the concept of venture credit. He expects demand to increase strongly as founders appreciate the benefits of using credit funding to retain larger equity stakes as their businesses grow.
Meanwhile, OneVentures is hoping investors are also becoming more familiar with the venture credit product and are recognising that investing in a venture credit fund is lower risk than investing in a venture equity fund.
Venture credit funds also generate regular yield from interest payments rather than investors having to wait for exits to receive capital returns.
Image: OneVentures partner Nick Gainsely.