Australia's Main Sequence closes Fund II at $194m

Returning investors from the firm's debut fund include Horizons Ventures, Hostplus, Lockheed Martin, and Temasek Holdings, according to a statement. Capital was also raised from family offices and private investors via Morgan Stanley Wealth Management and Mutual Trust.

Fund I closed on A$240 million in 2018 and went on to back 26 companies. The portfolio features the likes of rocket developer Gilmour Space, cybersecurity player Kasada, satellite communications start-up Myrotia, autonomous driving technology specialist Baraja, and quantum control engineering business Q-CTRL.

Fund II will follow a similar mandate to that of its predecessor, seeking to address key global issues such as widening access to nutrition and healthcare, applying technology to traditional businesses, building a workforce with skills relevant to the 21st century, and unlocking the benefits of space. For this vintage, there will be a greater focus on reversing climate impact, notably decarbonization.

"We are entering a transformational and critical decade for addressing climate change globally; Australia has a natural opportunity to develop the solutions that help everyone forge a path to net-zero. Our ingenuity and deep science background as a nation will be pivotal in building a clean hydrogen industry, adapting heavy industry, decarbonizing our energy grids, and developing new ways to capture and sequester carbon," said Martin Duursm, a partner at Main Sequence.

The firm claims to have pioneered a venture science model, which involves identifying a problem and bringing together scientific research, talent, and capital to solve it through company and industry creation. For example, the core technology of alternative protein maker V2Food was developed by a local management team using CSIRO research and working with food industry partners.

Last year, V2Food secured A$77 million in Series B funding with Temasek – directly and via its impact fund – New Horizons and Main Sequence participating alongside the likes of Sequoia Capital China. This followed the company launching a vegetarian hamburger at local Burger King equivalent Hungry Jacks and supplying its alternative beef offering to all Woolworths supermarkets.

David Ella, CEO of Hostplus, added: "The fund's priorities align strongly with our commitment to investing in nation-building projects and life-changing technologies. This is not just important to us for the societal benefits that will be realized, but also the sustainable and long-term returns that will be generated and which are in the best financial interests of our members."

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

• Topics
• Australasia
• Fundraising
• Venture
• Technology
• GPs
• Australia
• Main Sequence Ventures
• HOSTPLUS
• Temasek Holdings
• Horizons Ventures