Australia’s AirTree raises $188m VC fund

The fund is split into two tranches of equal size, AirTree Ventures 2 Core and AirTree Opportunity Fund. While the former will support early-stage start-ups at the seed, Series A and Series B stages, the latter will back more mature companies with larger check sizes of up to A$25 million. Two Australian superannuation funds are the sole LPs in the opportunity fund, according to a statement.

Airtree will continue its existing strategy of investing in software-as-a-service (SaaS) and marketplace business models, as well as entering new areas such as machine learning, augmented reality and the internet-of-things.

AirTree was founded by Craig Blair and Daniel Petre. Both previously worked for Netus, an Australian technology investment company that was acquired by Fairfax Media in 2012 and now operates as Fairfax Digital Ventures. Petre was also an investor at Ecorp, known for founding eBay Australia, while Blair is a serial entrepreneur and investor.

The firm, which used to focus exclusively on Australia's Series A space, closed its debut fund at A$60 million in July 2014. The dual tranche approach for Fund II is similar to that used by Blackbird Ventures, which closed its second fund at A$200 million in September last year. By having a follow-on vehicle, VC firms can accommodate superannuation funds, which typically need to write larger checks. 

The fundraise is further evidence of Australian instiutional investors' renewed interest in domestic venture capital, supporting firms that offer flexible structures with co-investment opportunities. First State Super and HOSTPLUS contributed A$110 million and A$35 million, respectively, to Blackbird's core fund and follow-on vehicle.

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• Topics
• Australasia
• Venture
• Fundraising
• Growth
• Technology
• Australia
• TMT
• AirTree Ventures
• Growth capital