Meet Side Stage Ventures, the big winner from Canva's Leonardo.Ai deal
Only two local VCs invested in the gen AI startup: Blackbird and Side Stage Ventures. For the latter, only 18 months old, it's a strong early run on the board.
The news this week that Canva will acquire generative AI startup Leonardo.Ai is a huge win for one of Australia’s newest funds, Side Stage Ventures, providing it with highly sought-after exposure to Canva.
The acquisition, which Capital Brief first reported had an implied valuation of $300 million, gave Leonardo.Ai investors the option to take a small return on their investment or convert their equity to shares, known as a scrip sale. Sources close to the deal confirmed that investors opted for Canva shares, while the Leonardo founders also took cash.
Leonardo.Ai raised just over USD30 million ($45.9 million) in a Series A in December last year from 10 investors. Only two Australian funds participated in the round — Side Stage Ventures and Blackbird, which led the round — with US and UK investors making up the rest of the funding. Other Australian funds had been allocated shares in the Series A but opted not to invest.
Side Stage Ventures partner Ben Grabiner said the sale was a meaningful outcome for the firm, which made its first investment 18 months ago and recently closed its first $20 million fund.
