Advance VC secures nearly half of $15m target at first close
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The news: Advance VC has secured nearly half of its planned $15 million for a vehicle focused on buying stakes in existing VC funds, attracting high-profile investors including Stake founder Matt Liebowitz.
The fund has already bought stakes in 11 VC funds, including vehicles from Blackbird, it said in a statement.
The context: The VC said investors were seeking liquidity as portfolio companies remain private for longer “and traditional 10-year fund cycles are extended.”
Founded by former Tidal investor Max Kausman, the Melbourne-based firm says it is Australia’s first dedicated VC fund-of-funds focused on secondaries, buying discounted holdings from limited partners and fund managers.
Investors also include Decjuba owner Tania Austin, former Smartgroup chief executive Deven Billimoria, Blackfox Property’s Marc Schwartz and Luxem, according to the statement.
So far it has exposures to startups such as Canva, Airwallex and PsiQuantum, it said.
The numbers: The fund invests between $100,000 and $2 million per deal, with an average holding age of six years. The fund targets a 20% internal rate of return, The Australian Financial Review reported, citing Kausman.
The source: Advance VC statement
