Super funds support Blackbird's $143m Australia VC vehicle

Blackbird was set up three years ago by Niki Scevak, founder of accelerator Startmate, Bill Bartee, previously of Southern Cross Venture Partners, and Rick Baker, who used to run MLC's venture capital program. Fund I closed last year above target at A$30 million, with founders of Australian start-ups and Silicon Valley investors accounting for the bulk of LP commitments.

The firm will continue to back 8-10 start-ups each year, working with entrepreneurs that address global markets from the outset. It will also look to provide seed and Series A rounds to companies that come through the Startmate program. However, with a larger pool of capital at its disposal, Blackbird will be able to support successful start-ups well beyond Series A.

Portfolio companies that have secured post-seed stage rounds include: marketing platform Autopilot, which raised $7 million in March from a group of investors led by US-based Salesforce; and Canva, a crowd-based outsourced web design platform that received $6 million this year in a round led by Matrix Partners and Shasta Ventures.

"Like Blackbird's first fund, the new funds are based around ‘founders helping founders.' Most of our investors are successful technology entrepreneurs who as well as providing their capital, provide advice and networks to the companies we back," the VC firm said in a statement.

Australia venture capital fundraising reached A$158 million and A$100 million in 2010 and 2011, respectively. In 2012, the total soared to $240 million but a year later it was back at A$152 million and then reached A$120 million in 2014. GPs have struggled as superannuation funds scaled back their commitments and several government-backed start-up support programs were discontinued.

The presence of First State Super and HOSTPLUS in Blackbird's fund is significant in that it adds credence to suggestions that superannuation funds are now becoming more interested in domestic VC. Earlier this year, Brandon Capital closed its latest life sciences vehicle at A$200 million, with AustralianSuper, Statewide Super, HESTA and HOSTPLUS among the LPs.

Venture capital should also benefit from changes to Australia's significant investor visa (SIV) program. Overseas business people can qualify for a streamlined path to permanent residence provided deploy at least A$5 million in approved local assets, including a minimum A$500,000 in VC or growth funds.

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