Square Peg Hits It Big With $859m VC Fund For Global Startups

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Square Peg, a venture capital firm based in Australia, announced closing their latest fund at $859 million. 

The fund will focus on investing in promising startups and early and late-stage tech companies in Southeast Asia, Australia, and Israel.

The VC firm will deploy the capital in two ways – firstly, for a core venture fund that invests in seed to Series B startups, and secondly, in the later stages of strong-performing companies that have previously secured capital via its Opportunities Fund. The VC firm has backed successful startups such as Canva, Airwallex, Amber and Blinq.

Square Peg co-founder Paul Bassat said in a LinkedIn post that the startup ecosystem is more exciting now than ever.

“It’s been a bit more difficult to find investors and even VCs this year, but we’re very thankful for the support of our partner,” Bassat said.

“We are again grateful for the support of our biggest backers, Hostplus and Australian Super. Alongside various other institutions, endowments, founders and family offices, they have helped us achieve our goals.”

This is the fourth time that superannuation fund Hostplus has backed a raise for Square Peg, along with Roc Partners and several new institutional investors.

Since being established in 2012 by Paul Bassat, Barry Brott, Tony Holt and Justin Liberman, Square Peg has funded over 60 companies and provided more than $905 million to investors. 

This has resulted in 11 exits with an internal return rate (IRR) of 42 per cent.

The VC, with offices in Sydney, Melbourne, Tel Aviv, and Singapore – has raised more than USD$1.6 billion ($2.5 billion) from a combination of new and invested returners 

Some of the company’s investments are in Athena Home Loans, Earlywork, Prospa, Rokt Marketing Technologies, Vow meat company and Zero Co sustainable cleaning supplies.

To date, Square Peg has more than 135,000 business clients. The company’s impressive portfolio includes FinAccel- a digital lending unicorn, Stripe- a digital payment platform, PropertyGuru- a real estate marketplace and LottieFiles -a San Francisco-based motion graphics service works with big names like Google, Airbnb and Netflix.

In a statement today, Square Peg said, “over the past decade, we have demonstrated significant benefits to investing across multiple regions. Doing this can empower exceptional tech founders from broader opportunities.”

“Our expansive opportunity set allows us to focus on themes and gain compounded advantages from our domain experience.”

“We have raised our fifth generation of funds during a time of great economic uncertainty, but we believe the years to come will be excellent for investing in private tech markets.”

Square Peg’s success in the global startup arena reaffirms Australia’s position as a hub for innovation and technology. With more support from investors and VC firms, we can expect even more groundbreaking startups to come out of the country.

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