Despite poor investing times in the wake of the dot-com crash, an Australian venture capital firm has defied the odds and raised AU$144.4 million to invest in local information technology and communication companies.
Claimed to be the largest technology venture capital (VC) fund to date, Technology Venture Partners (TVP) says the closing figure of its VC fund challenges Australia's technology sector doomsayers, proving investor confidence in technology companies does exit.
According to a company statement, the final VC figure exceeded TVP's initial target last October of AU$125 million, and took just six months to raise.
"The good news for Australian entrepreneurs is that we now have more than AU$140 million to invest over the next 24 months in innovative Information, Technology and Communications (IT&C) companies," TVP executive director Phillip Wing said.
The company's previous two funds secured AU$16 million and AU$45 million, which were invested in 14 Australian SMEs, such as Peakhour, Syrinx Speech Systems, and broadband provider Inter-touch.
Blue chip institutions such as BHP Super, Telstra Super, Goodman Fielder Super and Singapore-based Temasek Holdings contributed to the final stage of the VC investment.
"About 70 percent of the money came from institutions previously invested in us, the balance of that came from the new institutions, such as BHP and Telstra," Aaron said.
Historically, TVP has invested in Australian start-ups and early expansion companies. However, with the recent venture capital fund, the company is able to look further afield and invest in more advanced companies.
TVP has also established a US office in Silicon Valley. The company claims it will be better placed to assist local companies wanting to grow in the global market.
"One of the biggest obstacles for Australian technology companies looking to expand in the US is not having the contacts to facilitate expansion, whether they be lawyers, accountants, market researchers or potential recruits," Aaron said.
