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VC fund to back start-ups in ‘critically important national challenges’

Yolanda Redrup
Yolanda RedrupRich List co-editor

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OurCrowd managing partner Dan Bennett and long-time start-up investor Marten Peck have joined forces to create a new $40 million venture capital fund, targeting fields that are important to Australia’s sovereign capabilities.

Salus Ventures will invest in start-ups tapped into fields such as defence, robotics and advanced manufacturing.

Marten Peck, Dan Bennett and Mike Ferrari have teamed up to launch a venture fund aimed at bolstering Australia’s sovereign capabilities. 

It has already raised $25 million for the fund, and has appointed former Salesforce Ventures Australian boss Mike Ferrari as managing director.

Speaking to The Australian Financial Review, Mr Bennett said the world had changed over the course of the COVID-19 pandemic and there was more attention being given to the country’s ability to be self-sufficient.

“With all the things happening in the geostrategic environment, it’s important in the deglobalising, localisation context that Australia gets even better than we already are in the space of these technologies,” he said.

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“We have a strong pipeline to go beyond $40 million, but we want to keep ourselves lean on the first fund and execute beautifully to prove the thesis out. In the next quarter or so we believe we’ll complete the entire fund.”

The fund declined to name any of its early investors or its strategic advisers.

Mr Bennett said initially he and Mr Peck were planning to co-invest in deals together, but Salus came about after the interest the pair’s investing thesis attracted from their friends and contacts.

“We closed the first $25 million after an eight-week fund-raise. We thought that was a phenomenal response in the lead-up to Christmas,” he said.

“Our strength at Salus Ventures is identifying and supporting Australian founders who aspire to solve critically important national challenges through novel innovations in the areas of artificial intelligence and machine learning, cybersecurity and enterprise software, automation and advanced manufacturing, defence and aerospace, public wellness and other emerging technologies.”

Salus will focus on seed to Series A investments and will write cheques of up to $1.5 million for initial investments. Mr Bennett said some of its investors had also indicated a willingness to co-invest to increase cheque sizes.

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In January, the Financial Review revealed that US software giant Salesforce had pulled the pin on its local VC arm, as part of a round of global redundancies.

Mr Ferrari had led Salesforce Ventures locally since late 2021, but says he had already been in discussions with Salus Ventures for six months before the redundancy.

“Ultimately, it was a mutual agreement to part ways,” he said.

“It was an amicable, strong relationship and I hope to find opportunities to work together in this environment. They don’t have boots on the ground now, but I know what they’re looking for.”

Before joining Salesforce, Mr Ferrari had established and co-led the Sydney office of the CIA’s venture capital firm In-Q-Tel.

“Having been in this area from a strategic perspective before, it’s exciting to be involved and be part of one of the first traditional VCs in this area,” Mr Ferrari said.

Yolanda Redrup is the co-editor of the AFR Rich List. She previously reported on technology, healthcare and Street Talk. Connect with Yolanda on Twitter. Email Yolanda at yolanda.redrup@afr.com

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