Australian VC firm Airtree has announced the closure of its oversubscribed fifth fund at US$425 million.
According to a press statement, Fund V has received over 50 per cent of its committed capital from top-tier international institutional investors.
The fund has allocated US$165 million to early-stage investing and US$260 million to growth-stage companies.
With this new fund, Airtree’s total assets under management now stand at approximately US$1.3 billion. It has a portfolio of over 120 companies, including prominent names such as Canva, Airwallex, Go1, Linktree, Pet Circle, and Employment Hero.
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Australia’s tech landscape has demonstrated remarkable efficiency. Over the past decade, the nation ranked third globally for liquid venture-backed returns (IPOs and M&A value), surpassed only by the United States and China.
Notably, Australia has spawned more than 40 unicorns despite raising less than US$34 billion in total venture capital since 2000, making it the most capital-efficient producer of billion-dollar companies worldwide, according to Dealroom.
The ANZ region has evolved significantly over the last decade, transforming from a remote outpost into a competitive innovation ecosystem. Between 2013 and 2015, only six new ANZ tech companies achieved a valuation exceeding A$100 million. Today, that number has surged to over 150, equivalent to approximately US$65 million.
This growth has propelled technology to become Australia’s third-largest sector by economic contribution, creating hundreds of thousands of jobs.
The market’s maturity is further evidenced by a series of substantial exits. Atlassian’s NASDAQ public listing in 2015 marked an early milestone, followed by more recent significant events such as Block’s acquisition of Afterpay for US$29 billion in 2022 and the approximately US$15.7 billion exit for AirTrunk in 2024.
Kell Reilly, a General Partner at Airtree, highlighted the significant growth in local growth-stage deals. She noted that in 2017, less than 8 per cent of local deals were at the growth stage, which has now risen to over 20 per cent.
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“A highly compelling cohort of early-stage companies progressing to growth-stage as the market has matured,” she said. The growth market, relative to the early-stage market, is now approaching that of mature venture ecosystems like the US having expanded at a 19 per cent Compound Annual Growth Rate (CAGR) over the past five years.
“For global institutions, Australia represents a rare combination: proven exits, capital efficient founders, and a pipeline that’s just hitting its stride. The opportunity has always been here. Now the world is paying attention,” she explained.
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Australian VC firm Airtree has announced the closure of its oversubscribed fifth fund at US$425 million. According to a press statement, Fund V has received over 50 per cent of its committed capital from top-tier international institutional investors. The fund has allocated US$165 million to early-stage investing and US$260 million to growth-stage companies. With this new fund, Airtree’s total
The post Airtree closes US$425M Fund V to back ANZ startups appeared first on e27. Global, Investments, News, AirTree Ventures, Airwallex, Canva, Employment Hero, Go1, Linktree, Pet Circle e27