Australia: Alchemy Ventures launches with $200m dry powder for early startups

Photo by Alchemy Ventures

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.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.