Sydney-based Side Stage Ventures has announced a A$40 million first close for its second fund, which targets a total of A$50 million. The fund is backed by a network of founders from Australian tech giants like Canva, Linktree, and Airwallex. This new capital, more than double the size of its predecessor, signals strong confidence in the firm's founder-centric investment model.
Founder-Driven Investment Momentum
The new fund's substantial size reflects the firm's successful track record and the trust it has cultivated within the ecosystem. An impressive 90% of investors from the debut fund have returned to participate in Fund II. This high level of commitment underscores the value limited partners see in Side Stage Ventures' strategy and performance.
A key feature of the fund is the reinvestment from its own successful portfolio companies, creating a powerful flywheel effect. Founders from Leonardo AI, a startup previously backed by the firm and later acquired by Canva, are recycling their success into the new fund. This "founder-backing-founder" ethos is central to the firm's identity and provides invaluable expertise.
A Proven Track Record of Success
Side Stage Ventures has demonstrated its ability to identify and nurture high-potential startups, boasting two notable exits to Canva. The acquisitions of Leonardo AI and MagicBrief have delivered strong returns for investors. These successful outcomes have placed the venture capital firm in the top decile of its peers globally.
The firm maintains a clear investment thesis, typically deploying between $500,000 and $1.5 million in pre-Seed and Seed stage companies. While remaining sector-agnostic, Side Stage Ventures emphasizes providing more than just capital. It leverages its extensive global network to support startups as they navigate the challenges of scaling their operations.
Strengthening the Leadership Team
In conjunction with the new fund, the firm has announced key promotions to bolster its leadership for its next phase of growth. Elli Hanson, who joined two years ago, has been promoted to Partner, bringing her experience as a founder and a former director at Ogilvy. Her elevation reinforces the firm's commitment to having seasoned operators guide its investment decisions.
Hanson stated that the firm is built on providing "lived experience, sound judgement, unique resources and a bias to action." Further strengthening the team, Harrison Wright has been promoted to Principal, and Alice Williams has joined as Head of Operations. These appointments position the firm to effectively manage its expanded capital base and support its portfolio.
Capitalizing on a Generational Shift
Founding Partner Ben Grabiner views the current landscape, particularly in artificial intelligence, as a "once-in-a-generation reshuffle." He believes the next decade's most influential companies are only just beginning to emerge. This perspective drives the firm's mission to find and back the visionary founders building these transformative businesses.
The firm's confidence is mirrored by the strength of the Australian tech ecosystem, which produces more unicorns per dollar of venture capital invested than any other country. This fertile ground, combined with Australian VCs delivering superior returns, provides a strong tailwind for the firm's strategy. Side Stage Ventures is well-positioned to support the region's most promising innovators.
With a $40 million first close, a reinforced leadership team, and a proven strategy, Side Stage Ventures is poised for its next chapter. The firm's unique model, which leverages the capital and expertise of successful founders, continues to resonate within the startup community. As it begins deploying Fund II, the firm is set to shape the next wave of significant companies from Australia.