Investec buys into H2 Ventures
This is great news for Ben and Toby Heap, the brains behind H2 Ventures, with Investec Australian taking a stake in their businesses. This is also great news for the Australian FinTech industry. Investec Australia has taken a stake in the fintech accelerator H2 Ventures, a move the specialist lender believes will put it in the box seat to win work from entrepreneurs as they scale their businesses. The amount of Investec’s investment in H2 has not been disclosed but is understood to be several million dollars. David Phillips, the head of principal investing at Investec Australia, will join the board of H2, whose only other two shareholders are the […]
Fintech funds are drying up, but some local players welcome the drought
Aris Allegos, the founder of online small business lender Moula, was an entrepreneur in the dotcom era and an investment banker during the global financial crisis, so he has seen first hand the havoc a speculative frenzy can create. But as the torrent of capital from US funds backing start-ups in the burgeoning fintech industry slows, instead of panicking, this time around Allegos and his rivals are more relaxed. Although less capital will mean not all start-ups will survive, a more rational approach by investors will ensure money isn’t wasted, local fintech players say. “Before the [dotcom bust] an IPO document would say ‘This business gets X number of eyeballs’ […]
Australia is fast becoming a top source of fintech funding
Despite opportunities lost and having a relatively smaller fintech market than that of the US and the UK, Australia remains a top source of funding for financial technology companies. Last week, Australia’s biggest finance firm Atlassian debuted on Nasdaq, causing somewhat of a heartbreak to the local fintech market as its road to becoming a global public brand and increasing its current $8 billion valuation could contribute a lot to the local finance industry. However, various experts in the country are still confident that there is still an overflowing amount of money to boost the nascent fintech industry, and this could come from the local investors and companies. Economists projected […]
Ellerston Capital plans VC fund to target disruptive technologies
The Ashok Jacob-chaired Ellerston Capital plans to raise tens of millions of dollars early next year for a new venture capital fund, to be known as Ellerston Ventures, which will invest in disruptive technologies. Ellerston — which has more than $4 billion under management and runs eight funds including a new Asian listed investment company — has long had a venture capital arm that invests in what it calls “special opportunities’’. Now it wants to launch a new VC fund to take advantage of opportunities arising in the technology sector, especially the fintech space. Source: Ellerston Capital plans VC fund to target disruptive technologies
More Aussie funds available for fintech start-ups
Australian fintechs say despite Atlassian choosing Nasdaq to make its $8 billion raising, Australia is becoming one of the biggest sources of funding for them with Prime Minister Malcolm Turnbull an important catalyst. “This is our fourth year. Four years ago we talked to a number of Australian investment groups and there was very limited interest for a company trying to disrupt financial services,” said Beau Bertoli, the co-chief executive of small business lender Prospa. “In the last 12 months we have seen a huge swing the other way. There is not just offshore but onshore money and we should see a flurry of money coming into the industry in […]
First State Super commits $250m to fintech
Speaking at Sydney fintech hub Stone & Chalk yesterday, Prime Minister Turnbull said the $250 million partnership between First State Super and H2 Ventures “recognises there has been an insufficient appetite to date for this type of risk in Australia”. “But that is changing. There is $2 trillion in superannuation assets. As we start to see more investors in innovative ventures we will see the fruits of that,” Mr Turnbull said. “We’ve seen this year an explosion in venture capital funding, with more than $400 million raised so far. “That’s expected to rise to $600 million by the end of this financial year. That’s the highest amount raised in seven […]
Banks back focus on technology skills, start-up investor tax incentives
A federal Liberal MP says the government is considering effectively abolishing capital gains tax for investments in very-early-stage companies. Federal Liberal MP David Coleman, a former technology entrepreneur and venture capital investor, says the government’s innovation statement is considering changes to the tax system to encourage investment in start-up companies and seek to lift technology skills. At a StartupWeek Sydney session on fintech hosted by The Australian Financial Review and Reinventure Group on Monday, Mr Coleman said he is talking to colleagues about the abolition of capital gains tax for investors in start-ups, a move that would deepen the pool of growth capital available for entrepreneurs. The government innovation statement, […]
Why these giant Chinese companies could destroy Australia’s fintech ambitions
Fintech companies are some of the hottest startups around right now. Incredibly, more than 20 are now valued over $US1 billion. Australian credit reference fintech, Veda, might get bought for $2.2 billion. The possibilities offered by fintech are enormous. Mobile payments, payment terminals, smart contracts, smart bonds, P2P lending and crowdsourcing are all examples of new technologies that pose a risk to core services provided by the financial establishment. This is why they want in. According to some, Australia has the potential to be a leader in the sector. Australian super funds are investing heavily, with First State Super launching its own venture capital platform just weeks after putting $110 […]
