Early-Stage Venture Firm The Fund Launches in Australia

The Fund Expands Operations to Australia

The Fund, an investment firm specializing in pre-seed and seed stage startups, is extending its reach with a new launch in Australia. Established in New York in 2018, the firm has since broadened its presence to include Los Angeles, London, the Rocky Mountains, and the Midwest.

Driven by Local Demand

Jenny Fielding, co-founder and managing director at Techstars New York, explained that expansion decisions are guided by the needs of the local startup community. A request from founders and operators earlier this year prompted the launch of The Fund in Australia.

Beyond initial investments, The Fund cultivates a network of founders and leaders from thriving startups. These individuals offer both mentorship and capital as limited partners.

Investment Committee and Limited Partner Network

Each regional branch of The Fund operates under the guidance of a four-person investment committee. Leading the Australian operations are:

• Todd Deacon, Techstars managing director
• Elicia McDonald, principal at venture firm AirTree
• Adrian Petersen, co-founder of AfterWorks Ventures
• Georgia Vidler, former head of product at Canva

The Fund Australia will include 50 individuals in its limited partner base. This group encompasses founders from prominent companies such as Culture Amp (Rod Hamilton), Linktree (Alex Zaccaria), and Adore Beauty (Kate Morris), as well as leaders from Canva and Safety Culture.

These limited partners will actively contribute to identifying promising startups within their networks, forwarding them to the investment committee for consideration.

Fund Size and Investment Strategy

The Fund Australia is aiming to raise $3.5 million USD. It plans to invest in approximately 40 startups, providing initial funding rounds ranging from $50,000 to $100,000 USD over a 24-month period.

Portfolio companies will benefit from guidance provided by limited partners and the broader international community associated with The Fund.

Addressing the Funding Gap

Todd Deacon emphasized the importance of focusing on very early-stage startups, particularly in light of a growing funding gap at the pre-seed and seed levels. A report by StartupAus, a startup advocacy organization, indicates a decline in both the number and total value of angel and seed investments in Australia in recent years.

Deacon noted that as funds grow larger, they often shift their attention to later-stage investments. This trend, also observed in New York City, was a key factor in the original creation of The Fund.

“A significant gap exists in early-stage funding. We aim to address this by providing access to a strong network alongside initial capital,” Deacon stated.

Early Access and High-Quality Capital

By writing early checks, The Fund gains access to deal flow before other venture firms and limited partners. The smaller check sizes also offer an advantage when engaging with startups.

“We provide substantial value with our investment, offering access to a robust investor network,” Deacon explained. “Our limited partners are motivated by both financial returns and a desire to support the growth of Australian and New Zealand companies.”

Leveraging an International Network

Access to The Fund’s global network is particularly valuable for Australian startups, many of which prioritize international expansion from the outset.

The success of Australian unicorns like Atlassian and Canva is further strengthening the country’s startup ecosystem, according to Vidler. “We are at a pivotal moment, with a growing community of experienced founders and operators eager to contribute to and enhance the ecosystem here.”

Commitment to Diversity

The Fund Australia maintains a sector-agnostic approach and seeks to build a diverse investment portfolio. A commitment to gender parity has been central to the firm’s operations since its inception.

Each regional investment committee consists of two men and two women, approximately half of the limited partners are women, and over 40% of the total capital invested has been allocated to female founders. Vidler highlighted this as a significant attraction for her involvement.

“The opportunity to invest in the next generation of female founders is a major draw, particularly for many women in the Australian tech sector,” she said.