Beaten Zone Venture Partners raises $10m for defence tech, targets $60m
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The news: Australian defence technology venture capital firm Beaten Zone Venture Partners (BZV) has announced its first capital call after the first close of its Fund I, a conditionally registered Early Stage Venture Capital Limited Partnership (ESVCLP) fund.
The numbers: The firm has secured more than $10 million in commitments and is targeting $60 million for its final close within 18 months.
The fund has reviewed more than 350 companies representing potential investments of nearly $320 million.
The fund is targeting the US defence market, which has a budget of approximately $US900 billion ($1.37 trillion), compared to Australia's USD32 billion. The global allied defence sector exceeds USD1.2 trillion, with AUKUS commitments of over $350 billion across three decades.
The context: BZV focuses on sovereign Australian businesses that can sell to the US market. In particular, they are targeting companies that have found it difficult to raise capital due to their defence exposure.
The firm has already made investments in companies including HEO, which develops space environment technologies, Arkeus, which focuses on optics and autonomy sensor technology, and Nominal Systems, which creates simulation platforms.
What they said: "The response from investors has validated our thesis that defence technology requires dedicated venture capital expertise," said Steve Baxter, founder and managing partner of BZV.
"With this capital call, we're moving from thesis to action, ready to deploy more capital into companies building strategic technologies that enhance Australia's sovereign capabilities."
The source: BZV media release
