Blue Sky reaches $11.5m first close on Australia VC fund

The first investment will be in ParcelPoint, the country's largest independent online retail delivery network, and due diligence is currently underway on a second deal.

Blue Sky, which closed its debut VC fund at A$10 million in 2013, concentrates on lower risk late stage venture capital and early-stage expansion investments. The objective is to identify validated platforms and technologies with global reach that can be scaled up rapidly.

"We see sectors that are substantially underpenetrated because historically, most venture capital has focused on biotechnology and digital technology. We are open to all sectors provided the opportunity is right," said Elaine Stead, investment director at Blue Sky Venture Capital. "Our goal is to provide investors with an opportunity for exposure to venture capital and the substantial returns this asset class can provide, but with a lower risk profile."

The fund is a registered early stage venture capital limited partnership (ESVCLP), which means domestic investors will not pay tax on any returns. It is also eligible for the significant investor visa (SIV) program, prompting interest from high net worth individuals.

The SIV program is designed to attract overseas investment and provide a streamlined pathway to permanent residence in Australia for business people. Individuals become eligible after four years' residency, conditional on deploying at least A$5 million ($4 million) into approved assets such as government bonds and managed funds or into a direct equity stake in a domestic company.

From July 1, a minimum A$500,000 of this A$5 million must be committed to a venture capital or growth private equity fund. The threshold is expected to climb to A$1 million over the next two years.

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• Topics
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• Fundraising
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• Blue Sky Private Equity