Outset, a new kind of venture capital firm, is focused on funding transformative science and engineering startups. We’re excited to announce that it has closed $25 million into its second fund! This strategic priority addresses critical energy and infrastructure needs in New Zealand. It does so with a particular emphasis on the booming field of deep tech. Historically, Outset’s most significant achievements in the venture-backed space have stemmed from local investments, underscoring the region’s potential in fostering innovative solutions.
As Fund II begins to take shape, Outset’s Limited Partners (LPs) for Fund II are indicative of this strong commitment to local investment. About two-thirds of the fund is sourced from institutional and private means in New Zealand. And of the rest, one-third more comes from international high-net-worth individuals. Most of these investors are new arrivals to New Zealand, lured by the country’s increasing reputation as a destination for all things innovative.
Outset has already made big investments in a number of other high-potential companies, most recently OpenStar, a startup developing nuclear fusion technology. OpenStar has garnered attention for its work on levitated dipole reactors and has received funding from both Fund I and Fund II. Just recently, OpenStar crossed an important threshold by generating superheated plasma at a mind-numbing 540,000 degrees Fahrenheit. We got this great victory with an investment of $10 million or so. That’s a drop in the bucket compared to the resources typically required for traditional, government-led projects which can take decades to finish.
Angus Blair is a founding partner of Outset. He highlighted the company’s strategy to address the energy limitations which are currently preventing advances in artificial intelligence.
“We know that the biggest constraint for AI growth all comes down to who can get the most installed energy the fastest, and so that’s where we’ve ended up concentrating more of our attention.” – Angus Blair
Outset’s portfolio includes EnergyBank, another company poised to contribute to New Zealand’s energy landscape. With global demand for energy ever increasing, Blair agrees that Outset’s investments are both timely and critical. He notes that New Zealand’s unique position allows it to lead in specific sectors, particularly those focused on deep tech innovations.
In addition to its financial contributions, Outset operates a 60,000 square-foot facility in Auckland, equipped with laboratory and engineering resources for its portfolio companies. This infrastructure creates the breeding ground for smart, capital-efficient businesses — the kind that, according to Blair, New Zealand specializes in.
“We’ve got really capital efficient businesses down here, and so it goes a remarkably long way.” – Angus Blair
All of this is occurring amid an increasingly favorable environment for venture capitalists and founders in New Zealand. Blair, there’s an increasing eagerness among entrepreneurs to pursue bolder sets of improvements. Investors too are hungry to dive into these esoteric and highly technical fields.
“So founders and VCs feel they have a lot more license to go and take these big moonshot swings in these really technical domains.” – Angus Blair
Outset’s mission aligns with its investments, focusing on startups that aim to tackle downstream energy and infrastructure problems exacerbated by advancements in artificial intelligence. The firm is convinced that by supporting promising solutions, it can help play a part in creating New Zealand’s future energy landscape.
Now, Outset is embarking on a dynamic new chapter with Fund II. The whole team is committed to finding and funding companies that are demonstrating the most advanced breakthroughs in deep science and engineering. Those on the inside agree, as the firm continues to build on local strengths and draw global talent to power forward technological advances.
Leave a Reply