Airtree officially closes $650m fund backed by MetLife, US colleges
The VC says it is not interested in raising "mega-funds", despite support from its latest raising from blue-chip US institutions including Harvard's endowment.
Airtree Ventures has officially closed its fifth fund at $650 million, with more than half the capital coming from global institutional investors in what marks a watershed moment for Australian venture capital.
Despite the impressive number by Australian standards, partner James Cameron says the figure represents a deliberate decision to maintain fund size discipline rather than chase a mega-fund.
"Fund size inflation can be the enemy of returns in venture and all of the big LPs internationally are very attuned to that," he told Capital Brief. "We'd much rather raise smaller funds more frequently and optimise that likelihood of us continuing to get top quartile returns than raising these mega-funds one at a time."
The fundraise marks a significant shift in international LP interest for Australian VC. Some of the previously identified backers of the fund include Harvard Management Company, the University of Wisconsin, and Chicago-based private equity firm Adams Street Partners.
