Software-focused VC EVP bags $100 million for its 4th fund

Software-focused venture capital firm EVP has closed its fourth fund after hitting its $100 million final target.

The business-to-business (B2B)-focused VC now has more than $270 million in funds under management amid more than 40 early-stage startup investments in software companies in Australia and New Zealand, including Ignition, Deputy, Shippit and Hnry. 

The sole trader bookkeeping platform Hnry recently went on to raise $35 million in a Series B.

Last year EVP led a $10 million raise for healthcare management platform Zipline as it looked to expand in the US.

EVP cofounder Howard Leibman said he was pleased with the support for fund VI when the past year saw a more challenging fundraising environment.

“We saw a significant reset in valuations through 2022, leading many investors to re-evaluate their long-term exposure to technology in the private markets,” he said.

“We relied significantly on the continued support from our longstanding investors. At our first close of $60 million, commitments were overwhelmingly from our existing base. As we raised the $40m balance through late 2022, we were pleased to welcome a good number of new investors to the fund.”

Leibman said that like their previous funds, the investors are family offices and high net worth drawn to EVP’s investment thesis.

“For many, our sharp focus on early-stage B2B software and the consistency of our approach over multiple funds continue to resonate,” he said.

Capital from the new fund is already been deployed in three investments, with a further two at term sheet stage.

“We aim to build a concentrated portfolio of up to 15 companies. Whilst we won’t invest pre-revenue, we aim to partner with our founders very early on their journeys,” he said.

“If you’re a B2B software company with a global market and strong early traction, we want to talk to you!” 

Leibman said the local ecosystem is mature enough to support a number of funds with specialist investment mandates.

“For EVP, we think our exclusive focus on B2B software gives us a certain advantage in our investment process,” he said.

“Without doubt it makes us better partners to our founders. As we begin to deploy Fund IV, and as the local ecosystem continues to grow, we look forward to supporting Australia’s next generation of global software businesses.”

EVP launched in 2014 and has 12 partners, including four women.