Hostplus commits $50m in Artesian's China VC fund

Hostplus's investment comes seven months after it contributed A$85 million ($65 million) to Artesian's Australia VC fund. At that time, Hostplus reached an agreement with Artesian in identifying and investing in China-based start-ups.

Artesian started out in 2004 as a manager of fixed income funds, primarily concentrating on corporate bonds. Four years later it entered the early-stage VC investment space in Australia and China. The firm now operates a range of venture funds, an equity crowdfunding platform, and a vehicle that leverages the significant investor visa program through which overseas business people back Australian start-ups.

Artesian has a network of partners – including accelerators, incubators, university programs and angel groups - that pre-screens more than 2,000 start-ups each year. The top 5-10% are invited to participate in Artesian's accelerator programs. The VC firm has the right to invest in every pre-screened start-up and to participate on a pro rata basis in any subsequent rounds.

Artesian plans to employ the same strategy with its China fund, which will be managed by Flex Zhang, a Shanghai-based managing partner. The firm's first two local accelerator partners are Brinc and Zeroth, which focus on hardware and artificial intelligence, respectively, Jeremy Colless, a managing partner at Artesian, told AVCJ. The fund is expected to invest in 50-100 start-ups in China.  

Hostplus has committed over A$350 million to VC managers including Square Peg Capital, IP Group, Brandon Capital, Blackbird Ventures and MH Carnegie. The superannuation fund has about A$25 billion in capital under management.

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• Topics
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