Square Peg Capital heads up $60 million injection for Israeli startup

Photo by Mark Metcalfe/Getty Images

Square Peg Capital has led a $60 million capital raising for Israeli microtask service Fiverr, in a sign of the health of the Australian venture capital industry.

Square Peg, which is led by SEEK co-founder Paul Bassat, recently created a $200 million fund to invest in Australian startups. Backers included James Packer and several superannuation funds.

Fiverr is a microtasking website, specialising as a marketplace for digital skills. The company claims it processes 1 million transactions a month, as its community of freelancers do web design or writing for a $5 minimum.

The company is now developing a variable price structure – removing the $5 minimum from which it is named, and expanding overseas. Just 10% of Fiverr’s revenue comes from Australia.

Square Peg’s investment comes just twelve months after it opened an office in Tel Aviv, Israel’s fast-growing tech hub.

“We started our office here about a year ago. We have done deals in that period of time … some with top US funds that have a presence here in Israel. Now we have completed the circle — early, lead stage and now with this, growth stage,” Square Peg’s Tel Aviv-based partner Arad Naveh told The Weekend Australian.

“For Australian investors involved in Square Peg we now have a way to be involved in Israeli tech.”

Square Peg has invested smaller amounts in other Israeli startups. In June it took a group of 50 Australian entrepreneurs and investors on a tour of the Israeli ecosystem.

Other investors in the Fiverr round include Bessemer Venture Partners, Accel Partners, and Qumra Capital.

You can read more at The Australian.

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