Here’s Why A VC Fund Is Targeting Australia’s Rich To Make $100 Million In Tech Investments

The OneVentures managment team (L) Paul Kelly (C) Anne-Marie Birkill and (R) Michelle Deaker (photo: Supplied)

Another venture capital firm is raising money to invest in Australian start-ups with proven business models, and between $5 million and $15 million in annual revenues.

And here’s the really interesting thing: OneVentures wants wealthy investors, who don’t usually look at early stage tech, to help them raise the $100 million.

“In the later stage expansion and growth capital it’s almost at a 10-year low,” OneVentures founder Michelle Deaker told the AFR.

“The companies that have about $6 million to $10 million in ­revenue can’t raise capital.”

Institutional investors are putting less cash into the sector as the asset class is considered risky, though a lot of rich individuals aren’t scared of a punt, and know a good opportunity when they see one.

“There are some family offices that may not have a strategy that involves technology but high net worths favour opportunity,” she said.

“The market has identified there is an opportunity here; the institutional investors left it and there’s an opportunity to play, so they have been seriously looking at it.”

Last week we learned Daniel Petre — who co-founded Allure Media, the publisher of Business Insider Australia — is launching a $50 million fund to invest in local companies. Blackbird Ventures and James Packer’s Square Peg ­Capital have also invested heavily in the sector.

There’s more here.