Main Sequence Launches $250M AUD Deep Tech Fund

Main Sequence Launches New Deep Tech Fund

Main Sequence, the venture capital firm originating from Australia’s national science organization, has announced the establishment of a new $250 million AUD fund – equivalent to approximately $194.3 million USD. This fund is dedicated to investing in startups focused on groundbreaking deep technologies.

This represents Main Sequence’s second fund, and its successful oversubscription saw participation from existing investors. These include Horizons Ventures, Hostplus, Lockheed Martin, Temasek, private investors sourced through Morgan Stanley Wealth Management and Mutual Trust, as well as various family offices.

Venture Science and Commercialization

Established in 2017 by the CSIRO (Commonwealth Scientific and Industrial Research Organisation), Main Sequence currently manages a total of $490 million AUD, encompassing the CSIRO Innovation Fund. The firm distinguishes itself through a “venture science” approach, collaborating closely with scientists and researchers to facilitate the commercialization of their innovations.

The process begins with identifying critical challenges. Subsequently, Main Sequence assembles teams of scientists, industry collaborators, and investors to launch new ventures.

Investment Focus Areas

The second fund will prioritize solutions addressing key global issues. These include improving healthcare access, enhancing global food production, boosting industrial efficiency, and advancing space exploration.

A significant emphasis will be placed on decarbonization and mitigating climate change, with Main Sequence partner Martin Duursma leading this investment area.

A Collaborative Approach to Startup Creation

“In the deep tech sector, a direct company already exists for every problem is not always the case,” explained Mike Zimmerman, a partner at Main Sequence, in an interview with TechCrunch. “Alongside supporting exceptional founders within our defined areas of interest, we actively create companies to tackle these challenges, operating through partnerships rather than independently.”

Main Sequence leverages its connections with universities, CSIRO’s network of 3,500 scientists, and other research institutions to identify potential founders.

Industry Partnerships for Accelerated Growth

“We collaborate with research organizations, bringing in entrepreneurs-in-residence and working alongside them,” Zimmerman further elaborated. “A unique aspect of our strategy is partnering with industry leaders, securing their commitment and inclusion on the cap table from the outset.”

“This collaborative approach accelerates progress by aligning all stakeholders from the beginning.”

Success Story: v2food

As an example of its success, Main Sequence played a key role in the launch of v2food, a company specializing in plant-based meat alternatives, in January 2019.

Within just nine months, in October 2019, v2food began supplying its products to Burger King restaurants in Australia, following an initial investment of approximately $2 million AUD.

V2food’s investor base also includes Horizons Ventures, Temasek, Sequoia Capital China, and China Renaissance.

Expanding into Asian Markets

“We are observing companies rapidly expanding from Australia into China and other Asian markets, all facilitated by the venture science model,” Zimmerman stated. “Having refined this methodology, we have already completed several venture science deals and anticipate significantly increasing this activity.”

Portfolio Companies

Main Sequence’s current portfolio includes a diverse range of innovative companies. These are: Coviu, a telehealth software platform; Emesent, a developer of subterranean drone technology; Myriota, an IoT satellite connectivity startup; and Q-CTRL, a designer of quantum computing firmware.

Leveraging CSIRO’s Resources

The firm’s strong relationship with CSIRO provides its portfolio companies with access to a comprehensive ecosystem of research and facilities.

These resources can be utilized for advancements in areas such as new food technologies, synthetic biology, and laser tuning.

The new fund will specifically target areas like ingredients and flavorings for plant-based meats, technologies for reversing climate change, agricultural innovations for sustainable farming, and synthetic biology applications – including enzymes for a “circular economy” focused on waste product repurposing.