Square Peg hits $1b in investor returns, appoints new partner
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The news: Venture capital firm Square Peg has surpassed more than $1.12 billion returned to investors. It has also promoted a new partner as it looks to raise its next fund in the second half of 2024.
The numbers: Since launching in 2012, Square Peg has become one of Australia’s biggest VC firms. The Sydney-based company said it plans to launch its next fundraise for its sixth vintage of funds in late 2024, after promoting its head of distribution Leila Lee to partner.
It noted that exit returns had an average multiple of 6.1x across 14 companies, with an internal rate of return of 44%. The distribution to paid-in (DPI) capital for our first vintage (2012) was now 4.6x.
Exits included mergers and acquisitions, secondaries, and IPOs in companies such as Fiverr, PropertyGuru, Canva, CalReply, UHG, Puresec, Vend, and SMI.
Square Peg said the most recent exit was selling a portion of its Canva holding. More than 60% of exits have came from other portfolio companies including Fiverr, Vend, and Property Guru.
The context: Lee, who joined the firm in 2017, is responsible for Square Peg’s venture capital and listed tech equities funds capital raising and investor relations. She was previously an executive director at Goldman Sachs asset management.
What they said: Square Peg co-founder and partner Paul Bassat said: "We’re delighted to have surpassed more than $1 billion returned to Square Peg’s investors. This is a strong signal of Australia’s vibrant tech and venture capital ecosystem".
Lee said: "As we kick off raising for Square Peg’s sixth vintage of funds later this year, I’m proud that we continue to back founders through capital and support and bring to bear the best of being a local partner and a global investor across Australia, Southeast Asia and Israel".
"These regions have become increasingly important; when Square Peg started 12 years ago, about 90% of tech unicorns came from the US and China," she said. "Today, that figure is closer to 50% and more generational companies are being founded in our corners of the world."
The source: Square Peg media release
