Outset Ventures, a prominent Auckland-based venture capital firm and incubator, has successfully closed its second fund, raising an impressive $25 million USD (approximately $41.5 million NZD). This oversubscribed fund is dedicated to supporting startups that are pioneering advancements in science and engineering, particularly in sectors where New Zealand holds a competitive edge.
A Legacy of Nurturing Deep Tech Success
Formerly known as LevelTwo, Outset Ventures has a storied history of fostering deep tech enterprises. Notably, it served as the launchpad for Rocket Lab and LanzaTech, both of which have achieved unicorn status. The firm’s commitment to deep tech is evident in its strategic investments and the development of state-of-the-art facilities designed to support groundbreaking innovations.
Strategic Focus on Energy Solutions
In response to the escalating global demand for energy solutions, particularly those driven by the rapid expansion of artificial intelligence, Outset Ventures has honed its investment strategy. Angus Blair, a partner at Outset, emphasized the firm’s focus on energy generation and storage technologies, recognizing that the growth of AI is intrinsically linked to energy availability. This strategic direction positions New Zealand as a potential leader in addressing energy and infrastructure challenges associated with AI proliferation.
Portfolio Highlights: OpenStar and EnergyBank
Among the standout companies in Outset’s portfolio is OpenStar, a nuclear fusion startup developing levitated dipole reactors. In November 2024, OpenStar achieved a significant milestone by generating superheated plasma at approximately 540,000 degrees Fahrenheit. This accomplishment, realized with a relatively modest investment of around $10 million, underscores the potential for efficient progress in the fusion energy sector.
Another notable investment is EnergyBank, which is innovating in long-duration energy storage solutions tailored for floating offshore wind farms situated in deep waters. Blair highlighted that integrating such storage solutions can enhance the profitability of offshore wind assets by approximately 50%, thereby bolstering grid resiliency, especially in regions like Europe that face energy infrastructure challenges.
Expanding Facilities to Support Innovation
To further its mission, Outset Ventures has expanded its physical infrastructure. The firm now operates a 60,000 square-foot facility in Auckland, providing startups with access to advanced laboratories and workshops. This environment is designed to foster collaboration and accelerate the development of deep tech innovations.
A Commitment to Global Impact
With the successful closure of its second fund, Outset Ventures is poised to continue its support for startups that aim to address global challenges through scientific and engineering breakthroughs. The firm’s strategic focus on energy solutions and its investment in cutting-edge technologies reflect a commitment to positioning New Zealand as a hub for deep tech innovation with worldwide relevance.
