Summit Partners to invest $25m in The Iconic

According to The Australian Financial Review, the deal will be officially announced later this week. This investment comes in addition to the $20 million The Iconic secured in September from J.P. Morgan Asset Management. The company also received start-up funding from Berlin-based Rocket Internet. 

Adam Jacobs, managing director of The Iconic, said the Australian investment community is very conservative towards online retail and e-commerce in general.

"So far it's been the international investors who have been seeing the benefit of our growth," he said. "The Australian financial industry in general is more conservative, the investment mandates are more conservative with higher hurdles and more stringent requirements than you would find in America or Europe where there's more speculation investment."

His statement drew rebukes from the Australian Private Equity & Venture Capital Association (APEVCA).

"Not every investment is suitable for Australian VC firms," said Katherine Woodthorpe, chief executive of the APEVCA. "The VC industry doesn't have a lot of money in it full stop. It's been having some difficulties raising funds in recent years because as super funds get bigger they are less able to invest the smaller amounts the VCs require, they just can't write a check that small."

This investment comes just one month after Summit Partners invested EUR20 million ($26.4 million) in the German holding company of Southeast Asian online retailer Lazada. The company sells electronics, household appliances, beauty products, books and toys. Like The Iconic, it is also a recent entrant to the online retail market.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Investments
• Venture
• North America
• Australasia
• Consumer
• Early-stage
• Europe
• USA
• Australia
• Venture
• Consumer
• JPMorgan Chase & Co