Summary:
Outset Ventures closes $41.5M NZD fund to back deep tech startups in New Zealand
Focus on energy generation and storage to support AI and infrastructure growth
OpenStar achieves fusion milestone with plasma at 540,000°F
EnergyBank develops storage for offshore wind, boosting profitability by 50%
New Zealand’s venture investment hits record $350M in 2024, up 53% from 2023
New Zealand’s deep tech ambitions just got a $25 million boost.
Outset Ventures, the Auckland-based venture firm and incubator behind unicorns like Rocket Lab and LanzaTech, has successfully closed its second fund at an oversubscribed $41.5 million NZD. This fund is dedicated to backing startups that are pushing the boundaries of hard science and engineering, areas where New Zealand has the potential to lead globally.
Focus on Energy and Infrastructure
The fund is particularly focused on energy generation and storage, recognizing the critical role these sectors will play in supporting the exponential growth of AI and other technologies. "We know that the biggest constraint for AI growth all comes down to who can get the most installed energy the fastest," says Angus Blair, partner at Outset.
Spotlight on Portfolio Startups
- OpenStar: A nuclear fusion startup working on levitated dipole reactors, which recently achieved a significant milestone by creating superheated plasma at temperatures of around 540,000 degrees Fahrenheit.
- EnergyBank: Developing long-duration energy storage solutions for floated offshore wind, enhancing the profitability and efficiency of renewable energy assets.
A Unique Ecosystem
Outset’s 60,000-square-foot facility in Auckland provides portfolio companies with access to lab and engineering gear, a rare resource in New Zealand’s startup ecosystem. This vertical integration is key to de-risking deep tech ventures in a country where early-stage capital and technical facilities are limited.
Record Investment in 2024
Despite global economic challenges, 2024 saw a 53% jump in venture and early-stage investment in New Zealand, reaching a record high of $350 million. Outset’s Fund II reflects this trend, with two-thirds of its capital coming from local sources and the rest from international high-net-worth individuals.
Global Ambitions
While New Zealand’s startup ecosystem is small, it’s capital efficient and high quality. Outset is positioning itself as a launchpad for deep tech companies with global ambitions, leveraging the country’s track record in technical innovation.
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