R&D lending gains momentum for Radium Capital with plans to deploy $400m in 12 months

Radium Capital, a specialist Perth-based research development (R&D) financier, is seriously ramping up its lending activities with plans to deploy $400 million to Australian innovators looking to access federal tax incentives over the next 12 months.

Since inception the company, which was founded in 2017 by David Brennan and David Weir, has lent more than $925 million to more than 1,000 companies looking to access their R&D Tax Incentive (R&DTI) refunds early.

The company says demand for Radium Advances, which are paid up to 18 months ahead of the refunds being received from the Australian Taxation Office, has increased sharply in recent years.

Backed by Brevet Capital, a New York-based hedge fund which has a 50 per cent interest in the company, Radium Capital has become one of the largest R&D financiers in Australia – almost doubling its lending activity over the past two years. 

“We’ve been working tirelessly for years to support Australian innovators with non-dilutive capital and are immensely proud of the critical, pioneering impact we’ve had on Australian R&D,” says Jeremy Loftus, managing director of Radium Capital.

“With $400 million available to deploy over the next 12 months, we have the opportunity to deliver significant impact for Australian innovators.

“We are excited about the number of companies we have the unique capability to support, from small startups with a great idea to established ASX-listed companies with large R&D functions.”

Radium offers innovators a non-dilutive financial solution by unlocking their expected R&DTI refund early to accelerate commercialisation, reduce capital outlay, smooth year-round cash flow and attract other funding sources. 

Since its founding, Radium has led the growth of R&D funding in Australia, and Loftus says it is positive to see the growing awareness of R&D finance and the role it plays in the innovation funding landscape.

“We’ve seen a huge uptick in interest over the last three years as R&D lending has become more mainstream,” says Loftus.

“When Radium came onto the market in 2017, it took us over six months to write our first $10 million in loans. Now, we do that amount roughly every couple of weeks.

“More and more businesses are realising they can leverage Radium’s financing solutions to strategically boost their R&D budget, delay a capital raise, improve their offering to investors, or provide cash when they need it the most, without having to wait up to 18 months for their R&DTI refund or diluting their equity in the business.”

Loftus says enabling research and development not only creates jobs, but also builds sovereign capability and strengthens the Australian economy.

Among the companies that have accessed Radium Capital’s services is Sydney-based personal defibrillator developer Rapid Response Revival. The company's key product, CellAED, was created by founder Donovan Casey to make portable defibrillation more affordable, accessible and effective for use by bystanders.

“Accessing multiple Radium Advances strategically and reinvesting them in R&D was a game changer that continues to help us commercialise our innovation and grow,” says Damian Shrubsole, CellAED’s company secretary and head of investor relations.

“The Radium team is highly client-focused, and Radium Advance is an excellent non-dilutive funding option that’s fast and easy to access for startups and scaleups like ours.”

WeMoney, a Perth-based fintech that empowers people to take control of their finances and pay off debt faster by comparing products and providing insights into user spending, has also benefitted from unlocking its R&DTI early through Radium Capital.

After launching in 2020, WeMoney recently secured $12 million in a Series A capital raise that valued the company at $100 million.

“Radium Advances allowed us to fast-forward our R&D programs, complete product development and platform improvements months ahead of schedule and score a home run for our members and investors,” says Dan Jovevski, WeMoney founder and CEO.