{"id":41164,"date":"2023-10-20T15:12:03","date_gmt":"2023-10-20T15:12:03","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/new-20-million-startup-fund-launches-to-fill-a-major-gap-in-the-australian-ecosystem-startupsmart\/"},"modified":"2023-10-20T15:12:03","modified_gmt":"2023-10-20T15:12:03","slug":"new-20-million-startup-fund-launches-to-fill-a-major-gap-in-the-australian-ecosystem-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/new-20-million-startup-fund-launches-to-fill-a-major-gap-in-the-australian-ecosystem-startupsmart\/","title":{"rendered":"New $20 million startup fund launches to fill a \u201cmajor gap\u201d in the Australian ecosystem – StartupSmart"},"content":{"rendered":"
A new $20 million Australian VC fund will help local early-stage companies access the lucrative China market, plugging a \u201cmajor gap\u201d in the current ecosystem.<\/p>\n
Launched by Mai Capital, the Dragon Egg Fund will help Australian startups \u201cnavigate the complexities of doing business in China\u201d and has been approved by the government as an Early-Stage Venture Capital Limited Partnership, meaning investors will be able to access tax breaks.<\/p>\n
The fund is backed by the founder of property developer ICD Property Michael Mai, who says it\u2019s the first of its type of focus specifically on China.<\/p>\n
\u201cThere is definitely a need between Australia and China to encourage and support entrepreneurship and innovation between the two countries,\u201d Mai says.<\/p>\n
\u201cWe will look to invest in emerging companies that are positioned to tap into the enormous Chinese market.<\/p>\n
\u201cThis offers investors the chance to invest in high-growth innovative companies and provides these companies with a fast-track to the world\u2019s most populous country.\u201d<\/p>\n
The fund will provide late seed to Series B rounds of between $150,000 and $500,000 and will focus on five sectors: logistics, health, clean-tech, education and agriculture.<\/p>\n
Mai says now is the perfect time for local startups to look towards the China market, with the country in the midst of a transformation from manufacturing and investments to an innovative and consumption-based economy.<\/p>\n
“China’s growing urban middle class will more than double its spending over the next 15 years, helping to lift China’s consumption as a proportion of GDP to almost 50%,” he says.<\/p>\n
“By way of comparison, that means China’s consumption in 2030 will exceed today’s GDP in the US.”<\/p>\n
Artesian\u2019s Tim Heasley will serve as an advisor for the fund, while Tom Ellis will be the investment manager.<\/p>\n