Melbourne-based venture firm Adventure Capital began looking for investors this week for its second tech startup fund.
Adventure Capital founder and managing partner Stuart Richardson told Business Insider he was aiming to raise $40-$60 million.
In December, Richardson said he was looking to open a new fund to invest in up to 30 startups.
This week he started talking to institutional investors, corporates, high-net-worths and has started fielding offers from existing investors.
The minimum investment is $250,000. Richardson says he aims to close the fund by the end of the year.
Since the last time he raised in 2010, Richardson said the startup scene in Australia had matured.
“The ecosystem across Australia has grown exponentially. Our first fund was raised across 2010-2011, since then the entrepreneurial activity, M&A activity, IPO activity has all increased,” he said.
Richardson said he was seeing “increased activity” in the Australian investment market – especially from international investors. Just yesterday, major Silicon Valley VC outfit Accel Partners announced it would lead a $US111 million investment in Australian-listed cloud-accounting firm Xero.
Being based in co-working space York Butter Factory keeps Adventure’s deal pipeline plump and helps the firm keep an eye on what’s going on in the market.
“We’ve got a strong deal flow because of the ecosystem we’ve build around Adventure with York Butter Factory,” Richardson said.
Adventure previously had a focus on investing in multi-sided marketplaces and media with investments in Oomph, Myagi and Preazie. This time around the firm will focus on fintech, industrial internet solutions and health technology.
The new fund will also allow investors to co-invest additional money if they take a particular liking to the companies Adventure selects.