Australian investment management firm Acorn Capital has raised $55 million from wealthy investors and family offices for its first venture capital (VC) fund, which will make substantial investments in Series B or later-stage startup funding rounds.
The decision to start a dedicated VC fund comes after Acorn Capital changed its mandate to allow it to invest in private businesses, not just listed companies.
The company said the fund would fill a clear gap in the market and provide expansion capital to fast-growing businesses. There was an immature market around expansion capital but expects a lot of innovation and opportunity to leverage what it has been doing in supporting emerging growth companies.
While previously Acorn has had a broad mandate and made 70 to 90 investments per fund, it is planning to make only 10 to 12 investments from its first VC fund. The company expects the new fund to enable some local fast-growth companies to stay private for longer.