ACTivate Capital launches AUD $50m fund to boost Canberra startups
A new AUD $50 million venture capital fund has been launched in Canberra with the aim of supporting local research, technology and talent. The fund, ACTivate Capital, has secured approval to operate as an Early-Stage Venture Capital Limited Partnership. Its goal is to provide targeted investment across pre-seed, seed, and early Series A stages for 10 to 15 companies over the next decade.
Addressing funding gaps
In recent years, Canberra-headquartered companies have often faced pressure to seek capital outside the region, sometimes resulting in relocation. ACTivate Capital's launch follows concerns that ventures such as Quantum Brilliance, Liquid Instruments, and Nomad Atomics have sought growth opportunities beyond the Australian Capital Territory due to limited local investment. The fund's sector-agnostic approach will focus on commercialising science and translating innovation from Canberra's institutions into businesses capable of competing globally.
Initial partners
ACTivate Capital has reached an initial close at AUD $23 million, with plans to increase this to AUD $50 million. The ACT Government is a cornerstone investor. Epicorp acts as General Partner, with further support from UNSW Canberra and several local family offices as Limited Partners. The fund originates from an ACT Government-led initiative aimed at supporting and building on the legacy of previous regional early-stage funds, specifically Epicorp and ANU Connect Ventures.
Building on track record
Epicorp and ANU Connect Ventures have jointly invested over AUD $60 million in early-stage companies since 2002. Their portfolio includes firms such as Seeing Machines, Instaclustr, Windlab, Cohda Wireless and Mediaware. These companies have contributed to employment growth and skilled migration into Canberra, with Seeing Machines alone relocating 76 families to the city. The financial performance of these earlier funds is highlighted by a reported threefold fund multiple and a 14% gross internal rate of return from the Epicorp investments.
Geographic focus
Although the fund's remit is limited to Canberra and surrounding areas, it will invest in diverse sectors, including defence, quantum technology, clean energy, advanced manufacturing, and artificial intelligence. The emphasis is on supporting the commercialisation of research and intellectual property originating from the city's universities and R&D institutions.
Leadership team
The board of ACTivate Capital is chaired by Michael Cardew-Hall, who previously served as Pro Vice-Chancellor of Innovation at the Australian National University. Other board members include Ken Kroeger, Victor Pantano, Murray Rankin, Kerrie Jackson, Simon Uzcilas, James Palmer, Anne-Marie Perret, Brian Schmidt and Ian Cox. The team brings experience from academia, entrepreneurial ventures, and venture capital investment.
Employment and outcomes
The fund's backers expect to create several hundred high-value jobs over the coming decade, contributing to economic diversification in Canberra. ACTivate Capital states that it will measure impact not just in financial terms but by considering the number of jobs and skills created in the region.
"Good companies can always find money - but money often takes you away from Canberra. Performance is our primary measure, but purpose matters too. Every successful exit is also a story of local growth - of people choosing to build their careers, companies and lives in Canberra," said Ken Kroeger, Fund Manager, ACTivate Capital.
