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International VC launches fund for Australian deep-tech startups

Pacific Channel

Key Facts:

New fund targets to invest $55m in Australian deep-tech startups

Fund is a multi-stage investor providing pre-seed through to Series B capital

Pacific Channel fund will help Australian  startups scale faster and create more high-skilled jobs.

The Hon Danny Pearson, Victoria’s Minister for Economic Growth and Jobs, today [26 November] launched a fund targeting to invest $55m in Australian deep-tech startups.

Established by leading Asia-Pacific venture capital firm Pacific Channel, Fund IV is the firm’s first Australian-based fund will invest from pre-seed to Series B in up to 30 startups. 

Structured as an Early-Stage Venture Capital Limited Partnership (ESVCLP), Fund IV offers investors tax exemptions on capital gains from eligible venture capital investments and a 10 per cent offset on contributions.

Brent Ogilvie, Managing Director of Pacific Channel, said the fund responds to Australia’s growing pipeline of world-class research and the increasing demand for specialist deep-tech capital.

“While there are several later-stage deep-tech investors in Australia, as a multi-stage investor providing pre-seed through to Series B capital, we can support deep-tech companies at the earliest and most critical stages of their development.”

“We have already identified a number of investment opportunities which reflect the strength of Australia’s deep-tech pipeline and are now progressing through our due-diligence process, with several nearing completion.”

Fund IV is supported by a $300,000 grant from LaunchVic – Victoria’s startup agency – as part of its VC Support Program which provides funding for VC firms to set up in the state and back local startups.

 

LaunchVic CEO Dr Kate Cornick said Pacific Channel’s arrival signaled strong international confidence in Victoria’s startup ecosystem.

 

“LaunchVic is really proud to back Pacific Channel’s expansion to Australia and delighted to support the diversification of Victoria’s early-stage venture capital community.

 

“Victoria is home to some of the best Universities in the world producing incredible DeepTech breakthroughs.”

 

“Access to more capital in these crucial early stages will ensure more of that research is commercialised and scaled, rather than remaining in the lab.”

 

Minister Danny Pearson said: “We’re supporting global venture capital funds to set up in Victoria because it helps our startups scale faster and create more high-skilled jobs. Pacific Channel’s first Australian fund reinforces Victoria’s position as a leader in attracting global venture investment.”

 

“Victoria’s startup ecosystem is booming,” the Minister said. “The number of local startups has more than tripled since 2017 to 4,300 and the enterprise value of the sector now sits at $A143 billion.”

Established in 2004, Pacific Channel is one of Australasia’s most experienced deep-tech investors, specialising in science- and engineering-based solutions in health, ag/food and the environment.

Across its three other funds, Pacific Channel has invested in 67 companies (to date) and has achieved 11 successful exits, including the sale of Quantifi Photonics to Teradyne and Engender Technologies to CRV, which generated a 75x return.

Mr Ogilvie said Fund IV builds on the Pacific Channel’s experience in commercialising deep technology across Australasia.

“Our focus is on companies with strong scientific foundations and clear pathways to global scale,” he said.

Pacific Channel works closely with global corporates such as Intel, IKEA and CRV, and the firm's investors include sovereign wealth funds and private family offices across the Asia-Pacific.

 

Link: pacificchannel.com

 

• Pacific Channel Managing Partner Brent Ogilvie is available for interview.

 

The Pacific Channel’s support for startups

Pacific Channel takes an active approach to investing in startups. In addition to capital, Pacific Channel provides operational, technical and commercial support including:

• Five PhD-team members providing rigorous scientific and technical due diligence and bringing deep understanding of complex, research-based technologies;
• Four partners with multi-exit founder experience, bringing operational insights and empathy to early-stage company building and scaling;
• Deep licensing, corporate partnering and sales expertise, supporting strategic alignment, commercial validation, and go-to-market execution;
• Proven syndication and exit track record, with experience building investment consortia and delivering well structured, high-value exits; and
• A network of venture partners, advisers, and co-investors across Australasia, the US, Europe and Greater China – opening access to markets, strategic partners and cross-border capital.

 

Contact details:

Media contact:

Seamus Bradley  [email protected] 
0410 256 902