Australia’s Square Peg Raises Over A$1 Billion Across Two Venture Capital Funds

Australian venture capital firm Square Peg has raised more than A$1 billion ($700 million approximately) across two investment funds, allocating the majority of commitments to later-stage companies as the manager expands its capacity to support established technology businesses across Australia, Southeast Asia and Israel.

The fundraising comprises Square Peg Fund 6 and Opportunities Fund 3. Approximately 40% of the capital will support early-stage investments, while 60% is allocated to larger investments in existing portfolio companies and new opportunities. The firm has not disclosed the exact combined commitments or identified its limited partners.

Opportunities Fund Receives Majority of Capital

Square Peg’s latest fundraising separates early-stage investment activity from larger growth-stage commitments.

Fund 6 will target emerging technology businesses, while Opportunities Fund 3 will provide additional financing for companies that have progressed beyond their initial development stages.

Based on the reported allocation, more than A$400 million is designated for the early-stage strategy and more than A$600 million for the opportunities vehicle, although individual fund sizes remain undisclosed.

The structure allows Square Peg to establish positions in younger businesses while maintaining a separate capital pool for subsequent financing rounds.

This distinction matters for venture capital investors because successful portfolio companies often require substantially larger investments as they expand internationally.

The fundraising was first disclosed without a total in a July investor letter from Square Peg co-founder Paul Bassat. The manager subsequently confirmed the amount to Forbes Australia‘s fundraising report.

Square Peg Builds on Earlier Fundraising and Exits

Founded in 2012 by Paul Bassat and Tony Holt, Square Peg has developed an investment portfolio spanning financial technology, enterprise software and artificial intelligence.

Its investments include Canva, Airwallex, Zeller, Deputy, Stripe and Thinking Machines Lab. Square Peg previously raised approximately A$860 million in 2022, making the latest fundraising its largest disclosed capital raise.

The manager reports more than A$1.4 billion returned through exits involving 19 companies since inception, alongside a 41% gross internal rate of return.

Those performance figures are manager-reported and should not be interpreted as net returns received by limited partners.

Realizations have included the sale of cybersecurity company Bugcrowd, reductions in holdings of Canva and Rokt, and exits associated with acquisitions of Deci.ai and PropertyGuru.

The record also provides context for why Square Peg is allocating substantial capital to later-stage investments rather than concentrating exclusively on new startups.

Australian Venture Fundraising Gains Momentum

Square Peg’s fundraising follows Australian venture firm Blackbird’s A$1.05 billion sixth-fund close in August 2026.

Blackbird attracted commitments from Morgan Stanley Investment Management, Schroders, Adams Street Partners and several Australian institutional investors.

The manager’s investor disclosures provide additional context on its portfolio, historical fund performance and early-stage investment strategy.

Together, the two managers have secured more than A$2.05 billion in recently disclosed venture commitments, although their investment mandates and fund structures differ.

The fundraising contrasts with broader regional weakness documented in PE NEWSWIRE’s analysis of Asia-Pacific private equity fundraising and exits.

That report found Asia-Pacific private equity fundraising fell to approximately $58 billion in 2025, its lowest level in 12 years.

Square Peg’s latest close also provides a counterpoint to the difficult conditions facing specialist venture managers, including those discussed in PE NEWSWIRE’s coverage of climate technology venture fundraising.

What the Fundraising Means for Limited Partners

For institutional investors, Square Peg’s two-fund structure provides exposure to different stages of technology company development under one investment manager.

Early-stage investments offer the potential for substantial ownership appreciation, while later-stage investments can support established portfolio companies through larger financing rounds.

However, allocating approximately 60% of commitments to the opportunities strategy also increases the importance of growth-stage valuations, portfolio concentration and exit timing.

Square Peg’s presence in Australia, Israel and Southeast Asia further distinguishes its geographic strategy from managers focused primarily on domestic Australian startups.

The fundraising demonstrates that established venture capital firms with realized exits can continue attracting substantial commitments despite a selective global fundraising environment.

The investment test now shifts toward deploying that capital at sustainable valuations and generating distributions for limited partners.