Added by Pat Williams on March 26, 2014
Australian venture capital firm, OneVentures, today officially launched the OneVentures Innovation and Growth Fund II, seeking to raise $100 million from institutional investors and high net worth individuals over the next 12 months.
According to the company the fund will invest in a portfolio of emerging Australian companies with global ambitions across health care, education, mobile, media, cloud computing and data, and other areas.
The company says the first OneVentures Innovation Fund formed as an Early Stage Venture Capital Limited Partnership in 2010, raised $40 million and was supported by $20 million in funding from the Australian Government’s Innovation Investment Fund.
The fund was the first in Australia to tap into a growing trend in the Australian market for high net worth individuals and family offices to diversify their investments towards venture capital filling the gap vacated by institutional investors post-GFC. Since then, OneVentures has closed three co-investment funds securing $30m in additional funding for the portfolio.
“The quality of the portfolio OneVentures has assembled over the past four years is one of the best venture capital portfolios I have seen in Australia,” said Mark Nelson, Executive Chairman of Caledonia and an investor in OneVentures Innovation Fund.
The fund is trading at a premium after only four years and of its eight portfolio companies two are now operating out of Silicon Valley and one out of Boston, reflecting their successful growth into global markets. Smart Sparrow recently closed a $10m financing and Hatchtech over $12.5m for US expansion and US FDA phase three studies respectively.
“OneVentures is demonstrating a capability to do deals of global significance,” said Dr Michelle Deaker, Managing Partner at OneVentures. “Our investors value the technical experience of the partners as well as their proven entrepreneurial and business building experiences in the domestic and international arena. The partners also bring experience and networks of relationships to select highly attractive investment opportunities addressing large global markets, and to manage those investments through to the exit stage.”
According to Dr Deaker this is the time for investors to turn their attention to venture capital. Dr Deaker added, while traditional drivers of the economy such as mining and manufacturing are slowing or moving offshore, innovative technology-based companies hold the key to driving Australian economic growth and many are now succeeding on the global stage.
“While the innovation economy has been building, Australia continues to invest substantial capital in R & D and there has been substantial activity and investment in early stage angel syndicates and incubators. However, there is a dearth of capital available to propel those developing businesses forward with later stage development and expansion capital,” Dr Deaker said.
“This dynamic should create downward pressure on valuations and generate scope for superior returns. We see no reason Australia’s entrepreneurs, with the assistance of experienced venture capital firms like OneVentures, cannot compete successfully in global markets. For investors, the fund provides an opportunity to truly diversify a portfolio and gives access to emerging companies with true breakout potential.”
OneVentures is a venture capital firm that invests in emerging Australian companies with differentiated products in the information technology and life sciences targeting a global market. OneVentures is managed by a team of partners with a track record of hands-on business execution and operational management: a unique blend of highly successful entrepreneurs, technology business founders and corporate executives with a strong scientific pedigree, extensive offshore experience and networks (their achievements include major exits via M&A, significant NASDAQ listings and turnarounds).
OneVentures says it has $50M in funds under management and manages capital for over 55 high net worth and family offices. The OneVentures Innovation Fund is a $40 million venture capital fund raised in 2010 and formed as an Early Stage Venture Capital Limited Partnership. OneVentures is supported by the Australian Government through the IIF program with this funding matched by institutional investors, individual high net worth investors and family offices.
Find out more about OneVentures at www.one-ventures.com