OneVentures’ Innovation and Growth Fund II hits $100 million in FUM
Strong backing from high net worth and family office investors
OneVentures’ Innovation and Growth Fund II hits $100 million in FUM Strong backing from high net worth and family office investors Venture capital firm OneVentures has hit its target of $100 million in committed capital for its second fund, the OneVentures Innovation and Growth Fund II, receiving strong backing from high net worth and family office investors.
The Innovation and Growth Fund II is focused on investing in series B and C stage funding where businesses are generally approaching profitability but need capital to build scale and fuel growth. A smaller proportion will also be allocated to high growth companies at the Series A stage.
Following the government’s Innovation Policy Statement, OneVentures is seeking advice as to whether they can extend the fund after turning away some potential investors last week. The policy statement revealed that the government is lifting the cap on ESVCLP (tax free) funds from $100M to $200M for new funds.
The effect of the extension would enable OneVentures’ offering to be considered by the Superannuation Industry where they traditionally invest between $50M and $150M into a fund but generally cannot be more than 30% of a fund.
The Fund provides a fresh pool of capital to support innovation in Australia with OneVentures seeking to invest in a portfolio of emerging Australian companies with global ambitions across healthcare, education, mobile, media, cloud computing and data, security and privacy, machine learning, sensors and robotics, and food security.
OneVentures Managing Director and CEO Dr Michelle Deaker said reaching the $100M milestone reflected the strong appetite for opportunities in high growth technology-based companies.
“While it is encouraging to see the government supporting innovation in Australia with its commitment to invest $1 billion in the innovation sector, there remains an important role for the local VC industry to play in boosting funding to the later stages of the VC funding cycle where there is a significant structural market gap. In most cases, this is where both real value creation and real job creation happens in the economy.
“Often the entrepreneurs who run such companies are forced to move offshore in their search for this funding. At OneVentures we want them to have a quality onshore professional investment alternative or provide the supportive local partner in an onshore offshore VC syndicate,” Dr Deaker said.
OneVentures has become a trusted partner for the family office and high net worth community in Australia. Fund II now represents the largest high net worth and family office fund in the country.
“We understand that many of our investors do the majority of their VC asset class investments with OneVentures recognizing that they don’t have the time, quantum of dealflow, expertise or understanding of the types of terms required when investing in the innovation economy. The opportunity to co-invest in preferred companies is also appealing and can increase the IRR performance of their funds with us. We currently have two co-investment opportunities which will be offered in the New Year.
“There is no shortage of opportunities for Fund II. OneVentures announced a $3 million investment in Brisbane-based technology company, Find-Me Technologies, earlier this week. Find-Me Technologies is the developer of the Find-Me Carer’s Watch, wearable technology that supports the monitoring and care of individuals with conditions such as dementia,” Dr Deaker added.
With a total of $170M in total FUM, OneVentures manages two funds and six coinvestment funds and has designed a suite of processes to drive success in its portfolios with a highly disciplined investment approach.
Series B and C investment has proven to be a successful investment philosophy, demonstrated by the recent success achieved by OneVentures with investee company Hatchtech. In September, Hatchtech signed a $279 million commericialisation deal with Dr. Reddy's Laboratories (NYSE: RDY) for the rights to its head lice treatment - representing a forecast return of up to $100 million for OneVentures’ investors.
For more information, contact:
Rebecca Piercy Honner
+612 8248 3740