VC Airtree brings in new US investors for fifth fund with $650 million target

Sydney venture capital firm Airtree Ventures is hoping to fill a fifth fund with $650 million to kick off 2025, gathering commitments from three US investors as it hits its first closure.

The Sydney VC will split the capital in two, with Core Fund V investing in early-stage startups at Seed stage while Opportunity Fund V will look to support the Airtree’s portfolio companies seeking more cash, as well as backing more mature startups as they move into scaleup mode.

Airtree is hoping to make around a dozen bets on emerging startups annually with the Core Fund.

In a statement to Startup Daily, an Airtree spokesperson said: “We’re in the fortunate position of having an increasingly global mix of LPs in addition to our existing local investors in the first close of Fund V who share our belief in the outsized potential of Australian startups.”

Around 16% of the funding target, US$67.9 million (A$104m) has come from three US investors: Chicago private equity firm Adams Street Partners, as well as university endowments via the Harvard Management Company and University of Wisconsin, according to filings with the US Securities and Exchange Commission.

The AFR reports that local superannuation funds, AustralianSuper, the Australian Retirement Trust, and TelstraSuper, who are existing investors in the VC, have also gone again for Fund V.

On LinkedIn Airtree partner James Cameron said there were “lots of red-eyes and plenty of airmiles” to bring on the new limited partners.

“It’s a great feeling to be welcoming some of the world’s best LPs from US, Asia and Europe into our next fund,” he wrote.

“It’s a testament to the ANZ tech ecosystem that it’s now attracting the best of the best global capital to our shores to support the next generation of Canvas, Go1s, Employment Heros, Linktrees and Immutables.”

The VC added Kelland Reilly to its partnership earlier this year after he returned to Sydney with his family from the US.

General partner John Henderson added on LinkedIn that he was “humbled by the support, both onshore and offshore” for the new fund.

“This is a big moment for the Aussie and Kiwi startup ecosystems as some the world’s best fund investors recognise the achievements of great Aussie and Kiwi founders and are now putting their money behind the next generation to outcompete their global peers,” he wrote.

Airtree investor relations manager ncredibly proud to have led the charge alongside our partnership diversifying our LP base with the largest US endowments and top tier global fund of funds as they commit to their premier ANZ dedicated venture manager.”

The VC is hoping for a final close to Fund V in early 2025.