A $200-million venture capital fund Alchemy Ventures has been launched to target early-stage startups operating in the mining, financial, agricultural and consumer tech markets.
The fund focuses on startups that may be shut out from the ASX new rules that restrict early-stage companies from listing, according to reports by Australian local media.
The fund is backed by an influential group of investors – including co-founder of real-estate disruptor BrickX, Darren Patterson, co-founders of Perth corporate advisory Cicero, Matthew Walker and James Robinson, former T-Mobile and Telstra executive Drew Kelton and Adobe executive Paul Robson.
Alchemy Ventures co-founder Darren Patterson says, the fund will have an eye on Asia and will focus on series A rounds. The fund is looking at a final close soon.
“My view is that there’s a bit of a gap in terms of professional VCs and a lack of Series A funding,” Patterson said, as quoted by Startupsmart.
“It was always in the back of my mind to get a VC business up and going.”
The fund will invest from seed, start-up (pre-revenue, but traction) and into early expansion phases, according to an official statement in its website.
It will invest between $100,000 and $5 million, with up to 20 per cent of the fund’s investment will be in companies outside of Australia in the Asia-Pacific region.
“We expect that 60-90% of our investments will be in the early expansion stage of development, with the remaining 10-40% in the earlier stages. This provides a balance of risk and reward for our investors,” said the fund managers.
“We look for strong equity positions and back this up with board representation and protections for shareholders. But, ultimately, we look for businesses with strong exit potential, where we can work with the management team to build success.”
With Alchemy Ventures, the total funding in the venture capital sector in the past 12 months in Australia has reached more than $1 billion.
Previously, SEEK co-founder Paul Bassat launched $200 million Square Peg Capital fund backed by major investors including James Packer and Blackbird Ventures, and Atlassian founder Michael Cannon-Brookes launched its $200 million fund.