Blue Sky VC investment director Elaine Stead said the fund is aiming to raise $30 million, almost one third of all VC investment in Australia last year, and have its first close on 22 August 2014.
The alternative investments manager said the fund will aim to generate a 30 per cent internal rate of return net of fees and is applying for registration as an early stage venture capital limited partnership, meaning returns to investors will be tax exempt.
Ms Stead said Blue Sky will invest across a diverse and balanced portfolio of deals.
Blue Sky said while 80 per cent of all VC investment goes into the earliest stage companies, including start-ups, Blue Sky intends to focus on the under-penetrated, and lower risk late VC and early stage expansion sector.
The company said it will maintain a “technology and industry agnostic approach, in contrast to the wider VC market which typically invests 80 per cent of capital in the crowded biotechnology and IT spaces”.
Ms Stead said Blue Sky will look for “validated, game changing products or technologies which offer a global reach, rapid scalability or growth, established and experienced management teams and businesses where we believe we can genuinely add value”.
“We back companies that address global markets, and our investment partnerships ensure our companies have access to the expertise, capital and partnerships needed to support their growth,” she said.
