Australia’s Top Venture Capital Firms For Tech Startups [2024]

min reaD
Apr 19, 2024

In recent years, Australia has emerged as a thriving ecosystem for technological innovation. Amidst this burgeoning tech startup landscape, venture capital (VC) firms have played an instrumental role, catapulting forward-thinking startups towards success.

Despite the wealth of VC firms eager to invest in groundbreaking startups, the details surrounding Australia's venture capital landscape can be challenging to find—often out-of-date, scattered, or hidden behind paywalls.

Recognising this gap, we present a comprehensive list of the top VC firms in Australia for 2024. These tech investors set the benchmark for innovation and are actively championing the development of Australia's tech startup scene.

AirTree Ventures

  • Stage: Seed, Series A, Series B
  • Focus: Technology, SaaS
  • Notable Investments: Canva, Linktree, Employment Hero
  • Location: Sydney (Australia)
  • Website: airtree.vc

AirTree Ventures is committed to standing by founders from the outset, believing steadfastly in their audacious visions. As devoted long-term partners, they go beyond mere funding; they actively help portfolio companies with critical recruitment efforts, offering expert guidance on organisation design, employee experience, and compensation strategies. Additionally, founders gain access to an invaluable network of experienced individuals who understand the intricacies of scaling growth-stage startups.

Artesian VC

  • Stage: Seed, Early stage
  • Focus: Technology, Health and Life Sciences, Clean Energy
  • Notable Investments: ingogo, Sourse, Everty
  • Location: Sydney, Melbourne, Adelaide
  • Website: artesianinvest.com

Artesian is a global alternative investment firm, focusing on early-stage venture capital investments. They employ a co-investment model to provide startups with seed stage capital, while providing investors with diversified exposure to the venture capital class of asset management.

Bailador

  • Stage: Growth stage
  • Focus: Information Technology
  • Notable Investments: SiteMinder, Straker Translations, Instaclustr
  • Location: Sydney, Australia
  • Website: bailador.com.au

Bailador is a growth capital fund focused on private investments in the information technology sector. They partner with startup founders at the expansion stage, providing not only capital but also extensive operational experience to help businesses achieve international success.

Blackbird Ventures

  • Stage: Pre-Seed, Seed, Series A, Series B, Growth, IPO
  • Focus: Technology
  • Notable Investments: Canva, Zoox, SafetyCulture
  • Location: Sydney, Melbourne
  • Website: blackbird.vc

Blackbird Ventures, one of the largest and most active venture capital funds in Australia, focuses on supporting ambitious startups with a vision for global impact. They target technology companies that have the potential to generate over $100 million in annual revenue and have a strong track record of success. With a discerning eye for tech-driven startups with a lean capital requirement and high potential for rapid scaling, Blackbird Ventures commits to supporting founders from inception. They provide an exhaustive suite of resources, networking platforms, and programs to enhance startup success. Though they often lead investment rounds, they're also open to co-investment with other venture capitalists and making initial investments alongside angel investors.

Brandon Capital

  • Stage: Early stage, Series A, Series B
  • Focus: Health and Life Sciences, Biotech
  • Notable Investments: Global Kinetics Corporation, Vaxxas, PolyActiva
  • Location: Sydney, Melbourne
  • Website: brandoncapital.com.au

Brandon Capital Partners is Australia's leading life science and biomedical venture capital firm. They manage the Medical Research Commercialisation Fund (MRCF), one of the largest life science investment funds in Australia, providing capital and expertise to support promising biomedical discoveries.

Carthona Capital

  • Stage: Early Stage, Series A, Series B
  • Focus: Fintech, AI, Marketplaces
  • Notable Investments: x15ventures, Judo Bank, Athena Home Loans
  • Location: Sydney
  • Website: carthonacapital.com

Carthona Capital is a venture capital firm focusing on disruptive technologies and breakthrough medical research. They support founders/co-founders from the early stages of their venture and provide them with the necessary resources and mentorship to help them succeed.

Ellerston Ventures

  • Stage: Early stage, Series A, Series B
  • Focus: Technology
  • Notable Investments: Airtasker, Huddle, Different
  • Location: Sydney, Australia
  • Website: ellerstoncapital.com

Ellerston Ventures is a division of Ellerston Capital, dedicated to investing in early-stage businesses with significant growth potential. With an emphasis on the technology sector, they partner with entrepreneurs to offer strategic support and capital to drive growth and success.

Flying Fox Ventures

  • Stage: Pre-Seed, Seed
  • Focus: B2B SaaS, Health, Education, Climate
  • Notable Investments: Goterra, Skills Base, Safewill
  • Location: Melbourne, Sydney
  • Website: flyingfox.vc

Flying Fox Ventures injects early-stage capital to propel Australian & New Zealand companies across the globe. They look for amazing people who deeply understand the challenges around them and are breaking the mould on how to solve them. They also cultivate a robust community of early-stage investors while managing around $30M in funds across 50+ companies, aiding them in achieving their ambitious goals.

Giant Leap Fund

  • Stage: Seed, Series A
  • Focus: Impact Tech, Sustainability, Social Impact
  • Notable Investments: YourGrocer, Sendle, Amber Electric
  • Location: Melbourne
  • Website: giantleapfund.vc

Giant Leap is a venture capital fund backing founders who intertwine profit and purpose. They believe in using business as a force for good, focusing on investing in companies that deliver a social or environmental impact in addition to financial returns. Through a blend of capital, network, and expertise, they strive to assist their portfolio companies in amplifying their impact.

H2 Ventures

  • Stage: Series A, Series B, Series C
  • Focus: Fintech, Data, Artificial Intelligence
  • Notable Investments: Simply Wall Street, Equitise, Spriggy
  • Location: Sydney
  • Website: h2.vc

H2 Ventures is a venture capital firm helping early-stage entrepreneurs reinvent financial services. They offer alumni networks, mentoring, and operational guidance for early-stage entrepreneurs focussing on fintech, data, and artificial intelligence driven solutions. In addition, H2 Ventures provides companies with an in-house pre-seed program.

Investible

  • Stage: Seed, Series A
  • Focus: Diverse Industries
  • Notable Investments: QPay, Buzzy Games, Car Next Door
  • Location: Sydney
  • Website: investible.com

Investible is an early-stage investment group that provides high-potential founders with financial, human, and intellectual capital. They focus on supporting startups with global ambitions and have a methodology-driven approach to identify, invest in, and support the best founders.

Kosmos Ventures

  • Stage: Seed, Series A, Series B
  • Focus: Technology, SaaS, AI
  • Notable Investments: Bazaarvoice, Box, Cloudera
  • Location: Perth
  • Website: kosmos.vc

Kosmos Ventures is a venture capital firm specializing in investments in technology sectors, specifically software and AI. The firm supports talented founders and teams by providing them with the capital and resources they need to grow their businesses.

Main Sequence Ventures

  • Stage: Seed, Series A
  • Focus: Deep Tech, SaaS, AI, Robotics
  • Notable Investments: Baraja, Vow, Q-CTRL
  • Location: Sydney
  • Website: mseq.vc

Main Sequence Ventures invests in pioneers solving the world's most challenging problems. As the manager of the CSIRO Innovation Fund, they have a strong interest in deep technology startups that are based on high-quality research. Main Sequence Ventures' portfolio companies benefit from connections to leading global technology hubs, a strong advisory team, and resources to support their growth and market entry.

OneVentures

  • Stage: Series A, Series B, Series C
  • Focus: Technology, Healthcare, Life Sciences
  • Notable Investments: Vaxxas, Employment Hero, Qventus
  • Location: Sydney, Brisbane, Melbourne
  • Website: one-ventures.com

OneVentures stands as one of Australia's leading venture capital firms, with a focus on transformative businesses in technology, healthcare, and life sciences. OneVentures is known for its hands-on investment approach, helping companies navigate the complexities of growth with the aid of a team that has been through it all before. They offer extensive operational experience, global connections, and commercialisation know-how to propel startups to their full potential.

Our Innovation Fund (OIF)

  • Stage: Seed, Series A, Series B
  • Focus: Technology, SaaS, Fintech
  • Notable Investments: Kasada, Myriota, Uptick
  • Location: Sydney
  • Website: ourinnovationfund.com.au

Our Innovation Fund (OIF) is a leading Australian venture capital firm that aims to back and build world-class businesses. They strive to create long-term partnerships with entrepreneurs and are committed to providing more than just funding. OIF provides guidance, strategic advice, and the operational expertise necessary to build successful companies from the ground up.

Rampersand VC

  • Stage: Pre-Seed, Seed, Series A
  • Focus: Technology, SaaS, Fintech, AI
  • Notable Investments: Sendle, UpGuard, Nightingale
  • Location: Melbourne, Sydney
  • Website: rampersand.com

Rampersand VC is an early-stage venture capital firm focused on helping the most ambitious Australian and New Zealand technology companies achieve their potential. They pride themselves on their founder-friendly approach and a deep understanding of the technology landscape. Rampersand VC provides investment capital, operational support, and access to networks and expertise to help their portfolio companies scale.

Reinventure

  • Stage: Seed, Series A, Series B
  • Focus: Fintech, PropTech, Data and AI, RegTech
  • Notable Investments: Athena, Basiq, OpenAgent
  • Location: Sydney
  • Website: reinventure.com.au

Reinventure is an Australian-based, early-stage venture capital fund that invests primarily in fintech and adjacent areas. Backed by Westpac, one of Australia's leading financial institutions, Reinventure Group provides entrepreneurs with access to capital, network, and a deep understanding of financial services. They aim to invest in companies that have the potential to reshape the financial services industry.

Sapien Ventures

  • Stage: Seed, Series A
  • Focus: Fintech, Blockchain, Online Marketplaces
  • Notable Investments: Airtasker, Curious Thing, Linqto
  • Location: Sydney, Melbourne
  • Website: sapienventures.vc

Sapien Ventures is a technology-focused VC fund investing primarily in early-stage companies. They leverage foreign capital, Silicon Valley know-how, local market experience, to help the next generation of Australian tech ventures become successful globally. They are heavily focused on fin-tech, marketplaces, and other software-driven tech disruptions that will change societies.

Skip Capital

  • Stage: Seed, Early Stage, Growth Stage
  • Focus: Technology, Renewable Energy, Healthcare
  • Notable Investments: Brighte, Flick, OpenAgent
  • Location: Sydney
  • Website: skipcapital.com

Skip Capital is an Australian private investment fund with a focus on the technology sector, renewable energy, and healthcare. They invest across all stages, from seed to growth. Their mission is to support entrepreneurs making a difference in their fields and having a positive impact on the world.

Southern Cross Venture Partners

  • Stage: Seed, Series A, Series B
  • Focus: Cleantech, ICT, Health and Life Sciences
  • Notable Investments: Fulcrum3D, Morse Micro, Enlitic
  • Location: Sydney
  • Website: sxvp.com

Southern Cross Venture Partners is focused on creating and growing world-class tech companies. They partner with entrepreneurs with the drive and talent to take their innovations global and offer them funding, networks, and mentorship, with a particular focus on clean technology, ICT, and life sciences.

Square Peg Capital

  • Stage: Series A, Series B, Series C
  • Focus: Technology, SaaS, Fintech, Online Marketplaces, Enterprise Software
  • Notable Investments: Canva, Fiverr, Airwallex
  • Location: Melbourne, Sydney
  • Website: squarepegcap.com

Square Peg Capital is a leading venture capital investor that has made its mark by backing extraordinary founders who are solving hard problems in large markets. Since its inception in 2012, they've been ardent supporters of startups in Australia and Southeast Asia. Their investment strategy is centered around understanding the unique strengths and visions of founders, and they provide more than just fundraising support – offering strategic guidance, market insights, and extensive networks.

Telstra Ventures

  • Stage: Series B, Series C, Later stage
  • Focus: Technology, Telecommunications
  • Notable Investments: Box, DocuSign, Skillz
  • Location: Sydney, Melbourne
  • Website: telstraventures.com

Telstra Ventures is a strategic growth investor in lighthouse technology companies that are shaping the future. They leverage the power of their trusted brand, strong balance sheet, and global reach to give the companies they invest in an unparalleled advantage.


Ten13

  • Stage: Seed, Series A
  • Focus: Fintech, PropTech, SaaS
  • Notable Investments: Super, Beforepay, DingGo
  • Location: Brisbane
  • Website: ten13.vc

Ten13 is a syndicate-style VC platform that focuses on investing in early-stage tech startups, particularly in the fintech, proptech, and SaaS sectors. It stands apart due to its syndicate model, which allows high-net-worth individuals, family offices, and institutional investors to co-invest in startups. Ten13 offers a streamlined investment process and support to founders to help them realise their business vision.

Tidal Ventures

  • Stage: Early stage, Series A
  • Focus: Software, Consumer, Technology
  • Notable Investments: Lexer, Kasada, Buildkite
  • Location: Sydney
  • Website: tidalvc.com

Tidal Ventures is an early-stage investor focused on leading seed and Series A rounds. They back exceptional teams with global ambitions and provide them with the capital, network, and expertise needed to realise their vision.


Summary

Australia's tech startup scene is booming, with investment opportunities and high-growth valuations like never before. The government's dedication to fostering entrepreneurship, coupled with the availability of VC funding for early-stage startups (as well accelerators and incubators – new article on this soon), makes it an appealing destination for tech startups.

Remember, the fundraising journey is about more than just securing funds—it's about finding partners who believe in your vision and can provide the support you need to succeed in your target market. With the right help to align with your business model, you can navigate the entrepreneurial journey and leave a lasting impact on the world.

If you're a tech startup in Australia, this is a reminder that you don’t need to be in New York or San Francisco! Connect with your local venture capital firms mentioned in this article, present your ideas, and unlock your business's potential!

Scott Kennedy
Co-Founder & UX Director at Edition
Scott has a rich agency background supporting global brands with digital transformation. Today he’s committed to helping ambitious founders shape tomorrow with technology. Weekends are spent gardening with 90's hip-hop in his ears.
Reid McLeay
UX Designer at Edition
Reid has years of startup experience, including operating a crypto venture from Silicon Valley. A certified Webflow wizard and UX champion, he enjoys crafting impactful experiences. Passionate about conservation, he loves the outdoors.

FAQs

What are the key elements of a business plan when raising capital in Australia?

A business plan for attracting Australian fund managers and venture capital should detail a unique value proposition, market analysis, and growth strategy, in line with Australian market trends and regulations.

Incorporate case studies of successful Australian startups, demonstrating how venture capital works in the local context. Highlighting equity investment strategies and potential for high returns will resonate with both local and foreign investors, including those from influential markets like California.

How should AU tech startups prepare for VC due diligence?

Australian tech startups need to prepare comprehensive financial and business model documentation for venture funds' due diligence. This includes a clear understanding of equity stakes, ownership structures, and compliance with Australian business laws.

Startups should be prepared to discuss their approach to new technologies and how they plan to achieve profitability and repayment, if relevant—critical factors for venture capital and limited partnerships.

What’s the difference between private equity and venture capital?

In Australia, private equity typically targets mature companies for buy-out opportunities, often backed by private capital including superannuation funds.

What is venture capital? Venture capital focusses on emerging startups, offering venture funds for growth and scaling, particularly in new technologies.

The Australian venture capital scene is dynamic, drawing interest from fund managers and foreign investors keen on equity investment in high-growth sectors.

What are the key things to consider when comparing VC firms?

When assessing venture capital firms in Australia, startups should evaluate their track record with equity investments and their team's expertise in managing venture funds.

It's important to consider their network, especially connections with American investors and California's tech ecosystem, which can be crucial for global expansion.

Understanding their approach to venture capital, including limited partnerships and involvement in management, is essential for a successful collaboration.

How can tech startups show their potential for high returns to VCs?

Startups need to present a robust growth narrative that showcases scalability and market reach, crucial for attracting equity investment and venture capital. Leveraging Australian success stories and demonstrating a path to an Initial Public Offering (IPO) can make a compelling case for potential high returns.

The narrative should also include how the startup's new technologies can attract both local and foreign investors, including those from American markets.

What can AU tech startups learn from fundraising in Silicon Valley?

Australian tech startups can learn much from Silicon Valley's successful fundraising approaches. Emphasising rapid scaling and ambitious growth targets is key, alongside crafting compelling pitches that effectively convey the uniqueness of their business. Building robust networks with global investors and venture capital industry experts is crucial for gaining mentorship and support.

Utilising a data-driven decision-making process can help in validating their business models and demonstrating market potential. Startups should also be agile, adapting quickly to market changes and investor expectations. Clearly outlining strategic plans for fund usage to achieve growth milestones is essential. Additionally, adopting a global outlook from the onset, designing products and strategies with worldwide appeal, can be particularly attractive to venture capital investors.

By integrating these strategies, Australian startups can enhance their fundraising appeal, aligning with the innovative approaches of Silicon Valley while tailoring them to the unique aspects of the Australian capital market.

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Venture Capital
Looking to raise capital? Explore NZ’s top Venture Capital firms fuelling technology startups in 2024.
5 min read

In the last decade, New Zealand's tech startup ecosystem has experienced an extraordinary surge. Venture capital (VC) firms have emerged as instrumental partners, reshaping the trajectory of technology startups and propelling them toward significant valuations and IPOs on the NZX and beyond.

However, despite an abundance of VC firms eager to invest in innovative and forward-thinking startups, information on New Zealand's venture capital and angel investment landscape remains elusive, scattered, and outdated—with crucial insights hidden behind paywalls.

In this article, we present a comprehensive guide, shining a spotlight on the top VC players that are actively supporting and fuelling the growth of technology startups in Aotearoa in 2024.

Aera VC

  • Stage: Seed, Series A, Series B
  • Focus: Climate & Sustainability, Deep Tech
  • Notable Investments: Solugen, 54Gene, Aqua Cultured Foods
  • Location: Auckland (NZ), Singapore
  • Website: aera.vc

Aera VC stands at the forefront of deep technology and sustainability investments, propelling the world towards a brighter future. They proactively identify and support visionary founders and teams dedicated to addressing pressing global challenges like climate change. With a VC fund that has a global network and unwavering commitment to positive change, Aera VC positions themselves as an exceptional partner for early-stage ventures tech startup companies striving to make a meaningful impact on a global scale.

AirTree Ventures

  • Stage: Seed, Series A, Series B
  • Focus: Technology, SaaS
  • Notable Investments: Canva, Linktree, Employment Hero
  • Location: Sydney (Australia)
  • Website: airtree.vc

AirTree is driven by a mission to provide unwavering support to Australian and New Zealand founders from the very beginning, firmly believing in their audacious visions. As dedicated long-term partners, AirTree Ventures goes beyond funding; they actively assist portfolio companies in essential recruitment endeavours, offering expert guidance on organisation design, employee experience, and compensation strategies. Additionally, founders gain access to a valuable network of experienced individuals who understand the intricacies of scaling startups.

Blackbird Ventures

  • Stage: Pre-Seed, Seed, Series A, Series B, Growth, IPO
  • Focus: Technology
  • Notable Investments: Canva, Zoox, SafetyCulture
  • Location: Melbourne (Australia), Sydney (Australia), Auckland (NZ)
  • Website: blackbird.vc

Blackbird Ventures, one of the largest and most active venture capital funds in Australia, focuses on supporting ambitious startups with a vision for global impact. They target technology companies that have the potential to generate over $100 million in annual revenue and have a strong track record of success. With a discerning eye for tech-driven startups with a lean capital requirement and high potential for rapid scaling, Blackbird Ventures commits to supporting founders from inception. They provide an exhaustive suite of resources, networking platforms, and programs to enhance startup success. Though they often lead investment rounds, they're also open to co-investment with other venture capitalists and making initial investments alongside angel investors through their angel networks.

GD1

  • Stage: Pre-Seed, Seed, Series A
  • Focus: Deep Tech, SaaS, Hardware, Connected Hardware, Healthtech, Web3
  • Notable Investments: Foundry Lab, Zenno, Orbica, Dawn Aerospace, Auror
  • Location: Auckland (NZ)
  • Website: gd1.vc

GD1 (Global From Day One) is a VC firm that adopts a "bottom-up" approach, supporting exceptional insights-driven, science and engineering-anchored New Zealand companies within Aotearoa’s vibrant, diverse tech ecosystem. GD1 boasts a globally experienced team (ex-founders, operators, engineers, and investors). Their portfolio companies gain access to leading global technology hubs and extensive connections to support market entry on a global scale. GD1 also provides comprehensive support from in-house advisory experts specialising in various aspects of the growth journey, from capital raising to go-to-market strategy and operational excellence.

Hillfarrance

  • Stage: Pre-Seed, Seed
  • Focus: Gaming, Software, AI & Machine Learning, Climate Change
  • Notable Investments: Scannable, Partly, In Game Collectibles
  • Location: Auckland (NZ)
  • Website: hillfarrance.com

Hillfarrance is an early-stage VC firm that invests in audacious Kiwi founders driving innovations in media, gaming, artificial intelligence, and climate change. With a strong emphasis on the pre-seed and seed funding stages, Hillfarrance provides invaluable support through connections, networking, and operational expertise. Setting themselves apart, they allocate 20% of their returns to portfolio company founders, fostering a collaborative environment and shared success. Additionally, they offer assistance in areas like connections, business development, human resources, and founder/co-founder well-being support.

Icehouse Ventures

  • Stage: Pre-Seed, Seed, Series A, Series B, Series C
  • Focus: Sector Agnostic
  • Notable Investments: Halter, FirstAML, Hnry, Sharesies, Caruso
  • Location: Auckland (NZ)
  • Website: icehouseventures.co.nz

Icehouse Ventures is a VC firm dedicated to supporting brave Kiwi entrepreneurs in their journey to build global companies from New Zealand. Icehouse Ventures looks for founders with unique insights and deep domain expertise, aiming to build industry-disrupting global companies, particularly in the tech sector. They have a team of experienced advisors and investors who are committed to providing guidance and helping innovative businesses grow and thrive—with a specialised community, called First Cut, for founders under 30. Their portfolio companies gain access to a wide network of resources, including other portfolio companies and investors, for talent acquisition, guidance, follow-on capital, and valuable insights to help their company thrive.

Movac

  • Stage: Pre-Seed, Seed, Series A, Series B, Series C
  • Focus: Medical Devices, SaaS, Deep Tech, Healthcare, Aerospace
  • Notable Investments: Vend, TradeMe, Mint Innovation, Dawn Aerospace
  • Location: Auckland, Wellington (NZ)
  • Website: movac.co.nz

Movac stands as one of New Zealand's most experienced technology investors, having actively supported Kiwi entrepreneurs since 1998. Their mission centres around tackling challenging problems in large markets, providing comprehensive support to tech teams throughout their entire journey. With a wealth of functional expertise, global connections, and extensive experience in commercialising and growing businesses, Movac is dedicated to empowering startups to reach their full potential.

NZ Growth Capital Partners

  • Stage: Pre-Seed, Seed, Series A, Series B
  • Focus: Technology, Healthcare, Clean Energy
  • Notable Investments: LanzaTech, Narative, Kami
  • Location: Auckland (NZ), Wellington (NZ)
  • Website: nzgcp.co.nz

NZ Growth Capital Partners (NZGCP) is a government-owned investment firm dedicated to supporting innovative and high-growth businesses and driving innovation in New Zealand's entrepreneurial ecosystem. With a commitment to fostering economic growth, they provide patient capital and strategic guidance to help companies realise their growth potential. NZGCP offers tailored investment funds for different stages of a company's development. Through their impactful investments, NZGCP plays a pivotal role in fuelling economic growth and propelling New Zealand's innovation landscape forward.

Outset Ventures

  • Stage: Pre-Seed, Seed, Series A
  • Focus: Deep Technology (Energy, Hardware, Biotech, Aerospace, Advanced Materials)
  • Notable Investments: Open Star, Dennison Technologies, Vertus Energy
  • Location: Auckland (NZ)
  • Website: outset.ventures

Outset Ventures is a dynamic venture capital firm and deep technology incubator specialising in specialising in early-stage founder-led science and engineering startups. They are the only New Zealand based deep technology investors with an in-house laboratory and workshop facilities. Their experienced team and investment committee bring capital, a vast network, and industry expertise to help their portfolio companies thrive.

Pacific Channel  

  • Stage: Seed, Series A, Series B
  • Focus: Climate & Sustainability, Automation, Food & Beverage, Industrial, Deep Tech
  • Notable Investments: Tasmanion, Geo40, CropX
  • Location: Auckland (NZ)
  • Website: pacificchannel.com

Pacific Channel is a New Zealand-based venture capital firm dedicated to supporting groundbreaking science and advanced engineering deep tech companies that address significant global challenges. With a thematic focus on improving quality of life, future of food, sustainable economy, and automation, they provide capital, expertise, and networks to companies at various growth stages. Pacific Channel's portfolio reflects their commitment to solving complex problems and driving positive change for a better future.

Phase One Ventures

  • Stage: Pre-Seed, Seed
  • Focus: SaaS
  • Notable Investments: Cotiss, Sugar Wallet, EasyRent
  • Location: Auckland (NZ)
  • Website: phaseone.ventures

Phase One Ventures is not just a venture capital fund. It's a community of early-stage company founders, a product and growth incubator program, and a committed supporter of the next generation of innovative New Zealand businesses. With a vision of creating a thriving and vibrant startup community, Phase One Ventures helps founders achieve product market fit, crystallise their vision, and identify growth engines. They provide pro bono support through mentorship, expert sessions, social catchups, and bi-weekly office hours, while also providing investment opportunities to companies that demonstrate significant progress.

Punakaiki Fund

  • Stage: Seed, Series A, Series B
  • Focus: Technology, SaaS
  • Notable Investments: Whip Around, Vend, Timely, Couchdrop
  • Location: Auckland (NZ)
  • Website: https://punakaikifund.co.nz/

Punakaiki Fund is one of New Zealand's original and most prominent venture capital firms, known for its early-stage venture investments with high growth potential. Founded in 2013, they offer more than just funding, providing mentorship to support startup success. While Punakaiki Fund has a wide investment mandate and seeks a diversified portfolio, they find B2B SaaS business models particularly attractive and have a strong track record in this space with notable investments in Vend, Timely, Moxion and Linewize. They have a strong Socially Responsible Investment Policy that precludes them from investing in certain sectors and high emissions industries (including crypto). With their experienced team and vast international network of advisors, investors and business owners/founders, Punakaiki Fund continues to make a significant impact on the thriving New Zealand startup ecosystem.

Sparkbox Venture Group

  • Stage: Pre-Seed, Seed, Series A
  • Focus: SaaS, Diagnostic Technology, Communication
  • Notable Investments: Xero, Mish Guru, Auror
  • Location: Auckland (NZ)
  • Website: sparkboxventures.com

Sparkbox Venture Group is a prominent investor in high-growth technology companies throughout the Asia-Pacific region. Their funding programs, including GD1 Seed, GD1 Fund II, and Sparkbox Investments, cater to startups at different stages of development. With a diverse portfolio of innovative companies, Sparkbox Venture Group is an active investor, supporting and nurturing startups and playing a pivotal role in driving their growth and success. Their expertise and financial backing have created valuable partnerships for ambitious entrepreneurs in New Zealand and beyond.

WNT Ventures

  • Stage: Seed, Series A
  • Focus: AgriTech, Artificial Intelligence, Automation, Engineering, Sustainability
  • Notable Investments: Mastaplex, CarbonCrop, FoundryLab, Mint Innovation
  • Location: Tauranga (NZ)
  • Website: wntventures.co.nz

WNT Ventures is a venture capital firm that invests in ambitious deep tech founders. They provide high conviction support, connecting founders to resources, expertise, and support to build global businesses. WNT Ventures is dedicated to advancing deep technology as one of New Zealand's fastest-growing and highest-value creation sectors. They seek pre-revenue tech companies with defensible intellectual property serving global markets. In addition to capital, WNT Ventures offers hands-on support through pre-incubation funding grants, incubation programs, and valuable resources.

Summary

New Zealand's startup scene is thriving, with unprecedented growth and investment opportunities a range of potential investors. The government's commitment to fostering entrepreneurship and the increased availability of early-stage investment make it an ideal destination for tech startups.

Remember, the journey to raising capital is not just about the money or reaching a particular valuation in your seed round—it's crucial to find partner(s) and shareholders who also share your vision and can provide the support you need to succeed. Taking care in due diligence to gain the right support can pay dividends, allowing you to navigate the entrepreneurial journey and make a lasting impact on the world.

If you're a tech startup (or a small business with ambitious goals) in New Zealand, connect with the venture capital firms mentioned in this article, present your ideas, and unleash the potential of your business!

New Zealand tech startups can access arange of grants and support services beyond venture capital, such as through Callaghan Innovation. NZTE also has resources for if your business plan is to raise capital. Alternative funding methods (such as via private equity, crowdfunding, or with a venture studio) may be helpful to explore.

Looking for Aussie startup fundraising opportunities, such as Square Peg Capital in New South Wales or Startmate in Victoria? View Australia’s Top Venture Capital Firms For Tech Startups [2024].

Business
Building a tech startup? Discover how a Venture Studio can support your journey and increase your chances of success.
5 min read

Building a technology company from the ground up is a challenging endeavour. There are a myriad of inevitable challenges, from raising your first round of venture capital to assembling a world-class team - this can be particularly difficult for those who lack prior experience in the tech industry. Given 90% of startups fail, it's valuable to consider opportunities that might increase ones chances of success.

Enter the venture studio; a collaborative working model first adopted by Idealab in 1996. By combining industry expertise, resources, hands-on support, and valuable learnings from previous successes and failures, they are able to do more than traditional funding avenues. They provide a supportive environment for tech entrepreneurs on a tight budget, forging a collaborative approach to launching their new venture successfully.

What is a Venture Studio?

A venture studio (or startup studio) collaborates closely with founders and founding teams to build new companies and help them find product-market fit. In some cases they will even help to assemble a founding team to scale the business. Unlike traditional venture capital funds, a venture studio embeds itself within the startup's operations and strategic decision making in the early years of operation, acting as a co-founder that participates actively in the expansion of the new company.

How do Venture Studios Work?

The venture studio model offers a unique approach to turning innovative ideas into successful businesses, distinguishing themselves from traditional startup support systems through an active, holistic process.

Here's a general overview of how they work:

Ideation & Investigation

  • Process: Venture studios serve as hubs for creative ideas to be challenged and evolve further. These ideas might be sourced from within the studio itself, come from founders and startup teams outside the studio, or external collaborators. Ideas undergo meticulous evaluation for market potential, feasibility, and alignment with the studio's expertise.
  • Outcome: A well-defined concept with a clear understanding of the target market, potential challenges, and opportunities. Concludes with a comprehensive concept ready for further exploration and market validation.

Validation

  • Process: Ideas undergo rigorous testing against market realities. This involves in-depth competitor research, user interviews, business model consideration, and feasibility studies to assess the viability of the proposed venture — ensuring the concept holds promise and aligns with real user needs and market opportunities.
  • Outcome: The outcome of the validation phase is to gain a better understanding of whether the idea can meet genuine market needs before further time, energy, and resources are committed. This helps a new startup de-risk itself and increases the likelihood of success for the venture.

MVP Design & Development

  • Process: The venture studio (or venture builder) will shift into execution, prioritising key components of a first release based on a defined budget and desired timelines before bringing the idea to life. Founders collaborate with in-house experts across product design, product development, marketing, and strategic planning to refine an MVP solution and launch strategy, establishing a solid foundation for future growth.
  • Outcome: A tangible MVP – a digital product or service ready for market entry. By leveraging the expertise of the studio and focusing on core features, the MVP is designed to address user pain points and provide immediate value to the target audience.

Launch

  • Process: Once an MVP is built, venture studios assist in preparing the startup for market entry. This may involve branding, development a marketing website, and social media presence. Some startups will opt for a soft launch, conducting closed beta trials with potential customers while others will launch to the public from day one. The goal is to create a compelling market presence and generate initial traction for the product.
  • Outcome: The outcome of the launch phase is market entry. The venture studio aims to position the product for maximum impact and user adoption when the product steps onto the market stage, ready to captivate its audience.

Scaling

  • Process: As the venture gains traction and demonstrates scalability, venture studios will typically play a role in supporting its continued growth. This can involve support securing additional funding, evolving the MVP into a more polished solution based on user feedback, and expanding the team. It's important to note that venture studios typically don't accompany ventures to the point of an IPO; rather, they facilitate growth until the venture is independently flourishing.
  • Outcome: The outcome of the scaling phase is to facilitate new opportunities for growth and success. By leveraging established networks and industry connections, the studio aims to open doors for the venture that might otherwise be inaccessible. This could include opportunities for acquisition, strategic partnerships, or other avenues for expansion.

Off-boarding

  • Process: Off-boarding marks a pivotal moment for a startup, transitioning from venture studio-supported growth to a thriving independent company. This milestone reflects the venture's readiness to navigate the market confidently with the support of an internal team, embodying the culmination of a successful partnership that has equipped the venture for sustained success.
  • Outcome: Achieving independence is a testament to the entrepreneurial venture's potential and the value of the guidance provided by the partnering venture studio. This phase celebrates the venture's journey from concept to a competitive market leader.

Benefits of Venture Studios

Venture studios offer a number of key benefits that are particularly valuable to founders navigating the complexities of launching and growing a successful technology company.

Here’s a breakdown of some of these key benefits:

Risk Reduction

Venture studios help mitigate the risks inherent in starting a tech company. Leveraging their collective experience, they validate new business ideas and provide valuable guidance to startups through the early stages, ultimately increasing the likelihood of success.

Achieve More for Less

By leveraging their expertise and often accepting sweat equity (through mechanisms like SAFE notes), venture building with a venture studio can reduce the effective hourly rate of your startup’s development. This means that with a given budget, startups can accomplish more extensive outcomes or achieve a higher quality minimum viable product (MVP) compared to traditional funding avenues.

Essentially, startups can expand their resources further, unlocking the potential for greater innovation and market readiness without sacrificing equity or quality.

Easier Access to Funding

With their established networks, venture studios can make fundraising less daunting. They connect startups with investors, facilitating the financial backing necessary for continued growth after launch. Depending on the venture studio, they might also be able to position the new venture in a way that is more attractive to external investors; resulting in the ability to raise more capital, for less equity.

Access to a Collaborative Ecosystem

Partnering with a venture studio helps you enter an environment where collaboration is the norm. Entrepreneurs get to rub shoulders with experienced mentors, software experts, industry insiders, and fellow founders and portfolio company teams, creating a rich environment for knowledge exchange and support.

Shared Resources

One of the practical perks of venture studios is their provision of shared resources. These can include but are not limited to office space, equipment, and essential services like marketing support. This helps to not only cut down operational costs in a startup’s early stages, but also allows founders and co-founders to focus more on the strategic aspects of their business.

Accelerated Market Entry

The path from idea to go-to-market can be significantly shortened with the support of a venture studio. Thanks to their expertise and streamlined processes, startups can navigate the process of early-stage validation and product development more smoothly, to ensure a faster, more confident launch.

Types of Venture Studios

Not all venture studios are the same. They come in various forms, tailored to the unique needs of the startups they seek to support. Understanding what makes each unique can help entrepreneurs feel confident in their decision of who to partner with.

These are some of the most common types of ventures studios:

Industry-Specific vs. Industry Agnostic

Industry-Specific Venture Studios

Industry-specific venture studios, also known as niche venture studios, concentrate solely on a particular sector, such as Healthcare, Fintech, SaaS or Deep Tech. They choose to only offer their deep industry knowledge, insights, and specialised support to startups looking to operate in their area of expertise.

Industry-Agnostic Venture Studios

Industry-agnostic venture studios take a broader approach, welcoming startups from various sectors and industries. They focus on providing support and resources to startups with innovative ideas, regardless of the industry they operate in. This flexibility allows them to cater to a diverse range of entrepreneurs and business concepts, fostering wide-reaching innovation.

Corporate vs. Independent

Corporate Venture Studios

Established by large corporations, corporate venture studios will typically invest in and incubate new business ideas that align with their corporate goals. These startups often come from ideas generated in corporate hackathon events. While not always successful, corporate studios seek to combine the agility of startups with the resources and reach of well established companies.

Independent Venture Studios

Unlike corporate venture studios, independent venture studios are stand-alone businesses that are not affiliated with a large corporation, and operate independently - often within a credible agency that specialises in a particular field such as technology, or brand. They invest their resources into entrepreneurs and ideas they believe strongly in. These venture studios have an experienced entrepreneurship team and highly-skilled team members with a wealth of experience helping build and scale tech startups.

Hybrid Venture Studios

Hybrid venture studios combine elements of both corporate and independent venture studios. They have a strategic partnership with a large corporation or venture capital firm, allowing them to leverage resources and networks. These studios might evaluate investment opportunities independently, but typically have an investment committee that will make the final decision on partnerships.

Expertise-Led Venture Studios

In addition to the defining characteristics mentioned above, it’s not uncommon for a venture studio to have a specific area of expertise that influence their partnership decisions.

For example brand-led venture studios will support startups they believe they can help succeed by taking a brand-centric focus, embedding their expertise in brand strategy and identity capabilities into the business.

On the other hand, a technology-led venture studio will carefully select innovative new business ideas (such as those that utilise artificial intelligence) that they believe will have an unfair advantage if the business correctly balances it’s focus on innovation and usability; crafting world-class interfaces that encourage value delivery and retention.

The Difference Between Venture Studios and Traditional Startup Growth Methods

Of course, venture studios are not the only option available to founders looking to build and scale a successful technology company. Below we compare venture studios to some of the more traditional startup growth methods; venture capital firms, angel investors, startup accelerators, and incubators.

Venture Studios vs. Venture Capital Firms

Venture Studios offer a blend of investment (through rounds like pre-seed, seed funding, series A and so on), strategic guidance, and operational support, often actively participating in daily management. Unlike Venture Capital Firms, which primarily provide financial backing and mentorship, studios invest expertise and resources, accelerating startup growth in exchange for more equity. This model contrasts with VC firms' focus on financial investment and strategic advice, appealing to founders desiring substantial capital with minimal day-to-day external involvement.

Venture Studios vs. Angel Investors

Angel investors, investing their personal capital, often provide larger sums like venture capital firms but typically adopt a passive approach, allowing startup founders to retain management control. In contrast, venture studios actively assist with guidance and support, offering a distinct advantage for startups seeking hands-on operational help alongside investment.

Venture Studios vs. Startup Accelerators

Venture Studios differ from Startup Accelerators in their engagement depth and investment approach. Venture studios provide in-depth, long-term involvement, often co-creating businesses from the ground up, offering substantial resources, a small to medium sized equity stakes. Whereas Accelerators typically offer short-term programs with mentorship and small capital injections, focusing on rapid growth and networking opportunities, and usually require less equity.

Venture Studios vs. Incubators

Venture Studios differentiate from Incubators by offering extensive operational support and funding, often taking a larger equity stake due to their active role in startup development. Incubators, while providing a nurturing environment with mentorship and resources, usually don't involve direct funding or hands-on management. Similar to startup accelerators, this can be appealing to founders who seek support with greater autonomy.

In choosing between venture studios and traditional methods, founders should consider their specific needs, startup stage, and preference for equity and operational support, recognising each model's unique contributions to the startup ecosystem.

Venture studios can work alongside traditional VC firms and angel investors to complement financial investments with operational support, while accelerators and incubators prepare startups for further development and scaling.

Is a Venture Studio Right For Your Startup?

Having explored the concept of venture studios, you may be wondering if partnering with a venture studio is the right path for you and your new venture.

Here's why this model could be pivotal for your startup:

Early Stage Partnership

Venture studios excel in nurturing ideas from scratch. Their involvement from the ideation phase means you get more than just funding; you receive a partner who's invested in your vision and success from day one.

Hands-On Operational Support

Unlike traditional investors, venture studios offer active, hands-on guidance. They're your strategic partners, involved in daily decision-making and operational execution, providing an invaluable support system for navigating the startup landscape.

Ideation & Validation Support

Venture studios are invaluable for entrepreneurs who have a promising concept but seek expertise in evolving it into a market-ready venture. They provide a blend of resources and hands-on guidance, to rigorously validate ideas against market realities. This helps to ensure that startups they partner with are not just launching a product but addressing real user pain points and market gaps.

Access to Extensive Resources and Networks

Venture studios open doors to a wealth of resources and industry connections. This network is crucial for startups seeking to establish themselves and scale in a competitive tech ecosystem.

Risk Mitigation

With the high stakes of launching a tech startup, venture studios offer a strategic partnership to that mitigates risks. Their collective experience and support framework significantly bolster your chances of success, steering you through the complexities of the startup world.

Market Fit & Product Development

With their expertise, venture studios guide startups through the critical stages of market validation and MVP development. They ensure that your product not only enters the market but does so with a strong value proposition and fit.

Operational Involvement

For those who prefer an immersive support system, venture studios offer a unique advantage. Their active role in the early and crucial stages of your startup, from developing an MVP to accelerating your path to product market fit. They can help you make key decisions faster and significantly expedite your journey to market resonance.

Access to Resources

If you would benefit from shared resources such as office space, marketing expertise, and a collaborative ecosystem of industry experts, a venture studio can offer you tailored infrastructure to help facilitate your growth.

Risk Mitigation & Increased Success Potential

With the high stakes of launching a tech startup, venture studios offer a strategic partnership to that mitigates risks. Their collective experience and support framework significantly reduce the inherent risks of starting a tech company and amplify your chances of success.

It's important to note that joining a venture studio requires a certain level of commitment, flexibility, and openness to collaboration. While venture studios provide powerful support, they also expect founders to actively engage and contribute to growing a successful venture.

Whether as a simple fee-for-service or a combination of both fee-for-service and sweat equity, working with Edition offers your startup a unique opportunity to leverage our expertise, resources, and collaborative ways of working to propel your venture. With a track record of nurturing early-stage and high-growth ventures, and a commitment to driving innovation, Edition provides a dynamic and supportive environment for ambitious founders and technology teams ready to bring their ideas to life. If you'd like to discuss a potential partnership, let's talk.