Medium-sized business and high-growth firms are the focus of a multimillion-dollar investment fund that has just been launched in Australia.
Investec Australia is the local arm of a global investment bank that focuses on investment opportunities for high-net-worth individuals, institutional investors and large corporations.
The group has unveiled the Investec Emerging Companies Australia Fund 1 (IEC Fund), which is looking to raise between $50 million and $70 million for investment into rapid growth businesses valued anywhere between $10 million and $200 million.
It said the fund will typically inject between $1 million and $5 million in capital to help facilitate further growth across various sectors in exchange for “a material minority interest”.
“There are many passionate and innovative entrepreneurs in Australia. Many founder-led companies are looking for financial partners who can help them grow both locally and globally, with some now into their second or third venture,” fund manager David Phillips said.
“IEC was established to offer a single point of contact for founders and their early stage companies looking to access capital, advisory services or general corporate connectivity.
He added: “Investec’s experience and broader connectivity, as well as our international reach, can make all the difference to a company at that stage of its life cycle. And, often, this can be just as important as the capital we provide.”
The new investment vehicle comes just weeks after accounting giant KPMG revealed that venture capital investment in Australian start-ups hit $316.8 million last quarter – the second-highest quarterly figure since it began counting such investment in 2012.
For those businesses actively pitching for investment, tech entrepreneur turned venture capitalist Jamie Pride has some words of advice on what to do and, crucially, what to avoid doing in a bid to get investors to sign on the dotted line.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.