Pacific Channel

Our new Pacific Channel Opportunities Fund is a venture capital continuation fund – a model very similar to funds launched by major US firms, including Lightspeed Venture Partners, General Catalyst and New Enterprise Associates, amongst others. Over the past few weeks, Investment Banking partner Richard Pinfold has been engaging with prospective investors. Here are some of his key insights from those conversations: “Even with the 'newness factor' associated with the Opportunities Fund, the type of questions I’m getting reflects a genuine level of interest about the opportunity to invest in a portfolio of eight credible deep tech companies. Three common questions keep surfacing in our discussions: 1️⃣ Why create a continuation fund in Australasia now? While venture capital funds typically operate on a 10-year timeline, we've seen some of our strongest portfolio companies benefit from the additional runway this fund structure provides. Fund I's realized IRR of 101% demonstrates our ability to identify and grow successful companies. Morgan Stanley research validates this continuation fund approach, which we're now leading in Australasia. 2️⃣ What makes these eight companies unique? These early-stage companies have an average of seven years in operation and span healthcare, clean technology, agricultural technology, and horticulture. With an average unrealized IRR of over 65%, they've proven their business models and shown remarkable growth potential. Our 20% target IRR for the Opportunities Fund reflects our confidence in their continued commercialisation journey. 3️⃣ What gives you confidence in future value creation? We've worked closely with these companies for several years and have really good insight into their growth potential. Each has reached significant commercial milestones and has developed clear paths to market in their respective sectors. We see an opportunity to continue our involvement to help accelerate their next phase of growth through strategic support and our extensive industry networks." I’m excited about the true potential of this structure to bridge the gap between company growth needs and investor expectations. It's a testament to how our venture ecosystem is evolving to support companies through their full growth journey.   Interested in learning more about Pacific Channel’s Opportunities Fund? Feel free to message us or visit Syndex New Zealand for more information. https://lnkd.in/g-BzCFPs #venturecapital Thomas Powell Brent S. Ogilvie

In our latest Shaping History Together series, we chat with Sheryl T.. Through these videos, Sheryl shares: 🔹 Her journey from neuroscience PhD to venture capital, where she's turning scientific expertise into real-world impact 🔹 How we evaluate game-changing opportunities in deep tech, looking beyond the science to find truly transformative innovations 🔹 Why bringing diverse perspectives to technology and investment isn't just about equality – it's about building better solutions. At Pacific Channel, we believe great innovation comes from combining deep scientific understanding with commercial acumen and diverse thinking. Sheryl's experience and insights perfectly capture this philosophy in action. Watch the full series here: https://lnkd.in/g8tXwp_a #venturecapital #deeptech #founders #shapinghistorytogether

Our latest newsletter, The Current, highlights the strategic drivers and market opportunity behind establishing Pacific Channel's Opportunities Fund, reviews team developments and profiles some of our recent investments. #venturecapital #fundsmanagement

Today, we officially launched Australasia’s first venture capital continuation fund. This move follows a trend that has gained substantial traction in the United States, where similar funds secured over US$52 billion in investment last year.  Read more on our website: https://lnkd.in/gaeBdWaa The model addresses a common challenge in venture capital, where promising companies in existing funds need more time to mature to exit beyond the traditional ten-year fund lifecycle. Continuation funds allow venture capital firms to transfer performing but unsold assets into new funds, providing liquidity to original investors while maintaining support for growing companies. Major US firms including General Catalyst, Lightspeed Venture Partners, and New Enterprise Associates have launched similar funds, with the latter attracting investment from Goldman Sachs Group's alternatives unit. Interestingly, research from Morgan Stanley examining 71 continuation funds formed between 2018 and 2023 indicates strong performance, with these funds delivering higher return multiples on their invested capital compared to traditional secondary funds that purchase individual assets from founders or early investors. Pacific Channel's Opportunities Fund comprises eight companies arising from its Fund I, spanning healthcare, clean-tech, agri-tech, and horticulture sectors. These companies average seven years in operation, so are more proven than earlier stage start-ups.  https://lnkd.in/geZZ5d8S Thomas Powell Brent S. Ogilvie Kieran Jina Richard Pinfold

This was a great opportunity to provide Fiona Rotherham, NBR - National Business Review with our perspectives on the challenges and opportunities around lead investors in New Zealand's venture capital landscape. Here’s a couple of the key insights into lead investors that Brent S. Ogilvie and Sheryl T. shared with Fiona: 🔹 Beyond providing the largest amount of capital, lead investors should be in a position to understand the technology and markets to help drive value between capital rounds. They also often take board positions to support this growth.   🔹 Market dynamics appear to be shifting - we're seeing more startups seeking investment while many investors are focusing on supporting existing portfolios through current conditions 🔹 From our experience reviewing 350+ investment opportunities annually, we've observed the most successful relationships often stem from alignment between investor expertise and company needs 🔹 For founders, relationship building is critical. Start conversations with potential leads 12-18 months before you need capital, be realistic about your stage/valuation, and ensure alignment on sector expertise. This article is an important read for anyone who is part of our startup ecosystem: https://lnkd.in/gkPTsHqy #venturecapital #investment #deeptech

Congratulations to three of our portfolio companies, Cetogenix, Green Gravity and NILO, along with Kiwi deep-tech company Mushroom Material, for being recognised in the Cleantech Group Top 50 To Watch list. This annual list highlights 50 early-stage companies from around the world that are developing groundbreaking solutions to address some of the world’s most pressing environmental and sustainability challenges. The report can be downloaded here: https://lnkd.in/ei6bKMf Ashwath Sundaresan, Pacific Channel associate partner and a member of the Expert Panel that selected the top 50 companies: "These companies exemplify the kind of transformative technologies we seek to support at Pacific Channel. From energy storage to waste management and circular economy solutions, they are tackling some of the most pressing environmental challenges of our time." For some more insight into the Cleantech Top 50 to Watch list: https://lnkd.in/gENQh2MA Marny Reakes Sheryl T. Kieran Jina Rob Powell Brent S. Ogilvie Thomas Powell Richard Pinfold Roland Toder Lifei （莉菲） Wang Samantha Ng Louis Newton

Today, Green Gravity announced they have successfully closed their AU$9m Series A funding round and we're thrilled to be investing alongside BlueScopeX, HMC Capital and Sumisho Coal Australia Holdings (a wholly owned subsidiary of Sumitomo Corporation). The transition to renewable energy sources is arguably one of the most pressing challenges of our time. By repurposing legacy mineshafts for utility-scale, long-duration energy storage, Green Gravity not only provides a solution to the energy storage problem but also revitalises dormant industrial infrastructure and helps revitalise the environment. Here's more about why we invested in Green Gravity: https://lnkd.in/gCK5Y5P9 Marny Reakes Ashwath Sundaresan #venturecapital #cleantech #renewableenergy

Callaghan Innovation is celebrating 10 years of supporting New Zealand’s next generation of innovators through its Deep-Tech Incubator Programme. This report, which has been launched today to celebrate the milestone, highlights the impact this programme has had on our deep-tech ecosystem. Earlier this year, Pacific Channel was appointed a partner in this programme. For our team, being part of the programme gives us an opportunity to back even more ambitious New Zealand deep-tech ventures at their earliest stage—a point where the company typically carries the highest levels of risk and is capital intensive, which can make it more difficult to secure the funding they need to succeed. Here’s a link to the report released by Callaghan Innovation: https://lnkd.in/g62KGZNt

Headsafe - here's why we invested... Concussions are extremely common, especially in athletes. Almost everyone has either themselves ‘seen stars’ or know of someone who has had a ‘blow to the head’, and while they may not seem like a big deal, the effects can be serious and last for days, weeks or even longer. Yet, despite their frequency, concussions present a unique challenge due to the complexity of diagnosis and management. The team from Australian-based Headsafe have developed Nurochek, an FDA-cleared portable medical device capable of providing an objective concussion assessment in just 2 minutes. Nurochek is set to be a game-changer as it potentially addresses many of the key challenges in concussion diagnosis and management. Read why we invested: https://lnkd.in/gxuA2u4a #startup #venturecapital #health

Our team is expanding! Samantha Ng has joined Pacific Channel as Director of Strategic Operations, leading the establishment of our Australian-based fund. Sam brings a wealth of capital markets, relationship management, and strategic operations experience to Pacific Channel. Her focus on achieving financial success and meaningful outcomes fits perfectly with our commitment to investing in deep-tech companies developing solutions to tackle significant global challenges. https://lnkd.in/g4Z-cdPk #venturecapital #deeptech #investment