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squarepegcap.com

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Investments

96

Portfolio Exits

9

Funds

4

Partners & Customers

1

About Square Peg Capital

Square Peg Capital is an Australian based investor in early-stage technology companies. The firm backs people with great passion and vision and who have the capability to execute on that vision. SquarePeg's portfolio encompasses a diverse group of companies that desire to make a difference.

Square Peg Capital Headquarter Location

Level 1 28 Claremont Street

South Yarra, Victoria, 3141,

Australia

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Research containing Square Peg Capital

Get data-driven expert analysis from the CB Insights Intelligence Unit.

CB Insights Intelligence Analysts have mentioned Square Peg Capital in 2 CB Insights research briefs, most recently on Sep 2, 2021.

Latest Square Peg Capital News

‘Bigger deals looming’ as AirTree turns $60m into $2bn

Aug 23, 2021

Share The founder of leading Australian venture capital firm AirTree Ventures says the local tech start-up sector has grown to the equivalent of “country town” status, but expects huge new VC funds and mega deals in the near future, with AirTree’s portfolio cracking the $2 billion valuation landmark. Craig Blair founded AirTree alongside Daniel Petre in 2014, with an initial $60 million fund that marked it out as a major player in the current wave of start-up sector growth. Craig Blair says he believes there are much bigger VC funds on the horizon in Australia, and increasing interest in local start-ups from international investors. Dominic Lorrimer Across three funds so far , totalling $585 million, AirTree has invested in a host of companies, including Canva , GO1 , A Cloud Guru and Employment Hero , which have grown to the extent its holdings are now valued above $2 billion. Speaking to The Australian Financial Review about his views on the future growth of the sector, Mr Blair said he believed the local VC and tech sector still had a significant way to go to match the scale of comparable countries like the US and Canada. However he said recent breakout successes including the sales of Afterpay for $39 billion and A Cloud Guru for $2 billion made much bigger investments inevitable. “When we started there was only two or three local venture funds, and since then, the sector has gone from being like a small outback village, to now being like a large country town,” Mr Blair said. Related Quotes Advertisement “We are now seeing over 100 venture funds here, and $100 million valued companies popping up every month, and new billion dollar companies every year. The venture community is becoming much more sophisticated, with branded scale VC players and US funds actively in the market. “We have seen a spate of really big deals in the last few months and there are definitely even bigger deals looming.” The spate of recent funding rounds referred to by Mr Blair include five deals involving New York-based Insight Partners, which took out the entirety of a $US172.5 million ($221 million) round in Brisbane-based Octopus Deploy , as well as leading a $99 million round in SafetyCulture , a $140 million funding round in Employment Hero , and a smaller $16 million round in New Zealand-based legal tech firm LawVu . AirTree invested alongside Insight in a number of those investments, as well as sitting alongside Softbank to co-lead a $US200 million ($278 million) investment in online learning scale-up GO1 . Softbank was investing from its $US30 billion Vision Fund 2, which dwarfs the largest funds present locally, like Square Peg, Blackbird Ventures and AirTree, and Mr Blair said he expected to see much larger funds emerging locally in the near future. Advertisement The size of Australian venture funds has been on the rise since institutional investors, led by super funds like Hostplus , began looking to tap into the start-up boom via venture funds. Mr Blair said that there was still a much larger pool of capital to be tapped as the sector proves itself. Despite AirTree recording its largest ever first half of deals this year, deploying $103.3 million in the first six months of 2021, he said Australia was still relatively under-served by VC, with 17 times less funding than the US on a comparative GDP basis. This also left Australia in the bottom half of OECD countries when it came to VC investments as a percentage of GDP. AirTree has grown dramatically since it was founded by Craig Blair and Daniel Petre, the team as of October 2019 are pictured. Louise Kennerley “Firstly we have to demonstrate that we can actually invest a bigger fund on the investor side, but then from an LP (limited partner) perspective we are seeing more interest from institutional investors and more superannuation funds, who have been watching what has happened with some of the leaders in the space,” Mr Blair said. “Then there are international institutional investors who have woken up to the idea that Aussie VC is a great asset class, so these two things will drive larger funds.” In the immediate aftermath of the Octopus Deploy deal in April , it was suggested that Australian VC operators were receiving a wake-up call that they may now struggle to compete with US funds for the biggest local deals, but Mr Blair rejected that notion. He said there was essentially no “Australian VC” in that all the biggest funds had to be world-class and target global companies. Advertisement He said there was a danger for VCs in taking their eye off the ball as they got larger, and predicted that there would be an increasing number of investors specialising in certain sub-sectors of the tech industry. Asked if that meant AirTree would not be following the lead of Square Peg Capital and targeting funds at global listed tech stocks, he agreed that it would rather retain a typical VC focus. “I think it is essential for our future prosperity ...There are a whole bunch of issues that are most likely to be solved by applied science or applied technology.” — Craig Blair, AirTree Ventures “Our view at AirTree is that we think we have found a space where we can look our investors in the eye and say systematically we are going to make good bets. We will make some mistakes, but overall, we are going to make good bets and generate good returns,” Mr Blair said. “With a larger fund we have got to be careful of mission creep and not drifting into areas where we could probably do it, but it is not actually what we are paid to do. “We will add most value by backing private companies and taking a really long-term view about how we can help the founders achieve what they need to do.” Advertisement AirTree now has 72 companies in its portfolio, and says it has backed the most homegrown Australian and New Zealand start-ups that are now worth more than $100 million, with 23 in total. Three of these are unicorns (billion-dollar valued) in Canva, GO1 and A Cloud Guru, but that doesn’t mean Mr Blair is without investment regrets since 2014. While all VC funds will back companies that fail to kick on, the biggest regrets are always reserved for the good deals that got away. I think it was just a lack of imagination about how you can innovate the payment cycles, and really a 101 investment mistake on my part. — Craig Blair, AirTree Ventures He at least shares his biggest missed opportunity with the rest of the Australian VC scene. “The one that stands out to me is Afterpay. You know Nick Molnar was working in our offices, and frankly I missed it,” Mr Blair said. “I think it was just a lack of imagination about how you can innovate the payment cycles, and really a 101 investment mistake on my part.” Advertisement However, despite not being an investor, Mr Blair said both the Afterpay sale to Square and the sale of A Cloud Guru to US vendor Pluralsight were landmark moments for the Australian economy, as they provided further evidence that numerous world-class companies were coming off the local production line. The soaring success of Canva and the ongoing strong performance of Atlassian, was already showing the value of tech as a national export and Mr Blair said he believed further expansion of the local innovation economy would be vital to Australia as it looks to recover from the COVID-19 hit. “One of the main reasons in setting up AirTree was that we just fundamentally and passionately believed that Australia’s future success and our key to success is going to come around innovation, with one of the major ones being software and hardware,” Mr Blair said. “I think it is essential for our future prosperity, but it will also play a critical role in solving some of the world’s biggest problems, whether they relate to COVID, or climate change or the future of food security. “There are a whole bunch of issues that are most likely to be solved by applied science or applied technology. “Then I also fundamentally believe that the jobs of the future that our kids will be doing, will look very different to the jobs of today. These jobs will be created by the new companies that we are funding today.” Paul Smith edits the technology section and has been a leading writer on the sector for almost 20 years. He covers big tech, how businesses are using technology, fast growing start-ups, telecommunications and national innovation policy. Connect with Paul on Twitter . Email Paul at psmith@afr.com Save

Square Peg Capital Investments

96 Investments

Square Peg Capital has made 96 investments. Their latest investment was in Pluang as part of their Series B on September 9, 2021.

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Square Peg Capital Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

9/13/2021

Series B

Pluang

$35M

Yes

Go-Ventures, OpenSpace Ventures, SIG Asia Investments, and UOB Venture Management

5

8/31/2021

Series C

Doctor Anywhere

$65.7M

No

Asia Partners, EDBI, IHH Healthcare Berhad, Kamet Capital Partners, Novo Holdings, OSK Ventures International, Pavilion Capital, and Philips External Corporate Ventures

7

8/16/2021

Series A - II

retrain.ai

$7M

No

.406 Ventures, Charles and Lynn Schusterman Family Foundation, Hetz Ventures, Splunk Ventures, and TechAviv

2

6/22/2021

Series B

Subscribe to see more

$99M

Subscribe to see more

10

6/8/2021

Series B - III

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$99M

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10

Date

9/13/2021

8/31/2021

8/16/2021

6/22/2021

6/8/2021

Round

Series B

Series C

Series A - II

Series B

Series B - III

Company

Pluang

Doctor Anywhere

retrain.ai

Subscribe to see more

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Amount

$35M

$65.7M

$7M

$99M

$99M

New?

Yes

No

No

Subscribe to see more

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Co-Investors

Go-Ventures, OpenSpace Ventures, SIG Asia Investments, and UOB Venture Management

Asia Partners, EDBI, IHH Healthcare Berhad, Kamet Capital Partners, Novo Holdings, OSK Ventures International, Pavilion Capital, and Philips External Corporate Ventures

.406 Ventures, Charles and Lynn Schusterman Family Foundation, Hetz Ventures, Splunk Ventures, and TechAviv

Sources

5

7

2

10

10

Square Peg Capital Portfolio Exits

9 Portfolio Exits

Square Peg Capital has 9 portfolio exits. Their latest portfolio exit was FinAccel on August 03, 2021.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

8/3/2021

Acq - Pending

$991

4

00/00/0000

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$991

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10

00/00/0000

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$991

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10

00/00/0000

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$991

Subscribe to see more

10

00/00/0000

Subscribe to see more

Subscribe to see more

$991

Subscribe to see more

10

Date

8/3/2021

00/00/0000

00/00/0000

00/00/0000

00/00/0000

Exit

Acq - Pending

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Companies

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Valuation

$991

$991

$991

$991

$991

Acquirer

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Subscribe to see more

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Subscribe to see more

Sources

4

10

10

10

10

Square Peg Capital Fund History

4 Fund Histories

Square Peg Capital has 4 funds, including Square Peg Capital Fund IV.

Closing Date

Fund

Fund Type

Status

Amount

Sources

12/14/2020

Square Peg Capital Fund IV

$450M

2

6/24/2019

Square Peg Capital Fund III

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$99M

10

5/3/2019

Square Peg Capital Fund II

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$99M

10

3/20/2017

Square Peg Capital Fund

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$99M

10

Closing Date

12/14/2020

6/24/2019

5/3/2019

3/20/2017

Fund

Square Peg Capital Fund IV

Square Peg Capital Fund III

Square Peg Capital Fund II

Square Peg Capital Fund

Fund Type

Subscribe to see more

Subscribe to see more

Subscribe to see more

Status

Amount

$450M

$99M

$99M

$99M

Sources

2

10

10

10

Square Peg Capital Partners & Customers

1 Partners and customers

Square Peg Capital has 1 strategic partners and customers. Square Peg Capital recently partnered with CBA on July 7, 2020.

Date

Type

Business Partner

Country

News Snippet

Sources

7/28/2020

Partner

CBA

Hungary

Big four embrace fintech nirvana

CBA 's strategic partnership with Square Peg Capital , which specialises in artificial intelligence applications for business , marks a new tack in CBA 's fintech financing model .

1

Date

7/28/2020

Type

Partner

Business Partner

CBA

Country

Hungary

News Snippet

Big four embrace fintech nirvana

CBA 's strategic partnership with Square Peg Capital , which specialises in artificial intelligence applications for business , marks a new tack in CBA 's fintech financing model .

Sources

1

Square Peg Capital Team

1 Team Member

Square Peg Capital has 1 team member, including undefined undefined, undefined.

Name

Work History

Title

Status

Paul Bassat

Founder

Current

Name

Paul Bassat

Work History

Title

Founder

Status

Current

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