Funds SA, which manages more than $50 billion, including public sector super funds, is the cornerstone investor, having chipped in $5 million in June. More than 50 sophisticated investors and family offices from Australia, Singapore and the US also jumped on board.
Eastend Ventures Fund 1 targets early-stage tech companies in South Australia, Western Australia and Queensland, mostly with a B2B focus. More than $8 million is already invested across seven startups.
The portfolio includes Adelaide defence analytics startup Priori Analytica, which classifies sonar and acoustic signals and is deploying into NATO and US Navy programs this year.
Job management software business Jack App has expanded into the US and Canada, while Heatseeker, which raised $2.5m last year uses AI agents to help enterprise marketing teams test products, pricing and positioning. Its customers include L’Oréal, Cisco and DoorDash.
Eastend founding partner Josh Garratt said securing institutional backing required the firm to establish governance and compliance processes, including independent investment committee members.
“We built this fund the way a superannuation investor expects, with independent members on our investment committee and robust governance and compliance,” he said.
“That is what a manager has to show before an institution will commit, and our job now is to turn that trust into returns for the people who backed us.”
The VC hunts for startups in states that attract relatively little venture funding, often leading the rounds
The fund targets an exit from investments within around five years, backing founders seeking to build and sell businesses worth $200-500m, prioritising an ROI for the fund’s investors over waiting for a billion-dollar valuation.
Eastend’s latest investment is Nitrosend, an AI email platform from the founders behind Bluethumb and SmartrMail. It banked a $700,000 Seed round in June. Other investments include Optible AI, BlueNexus and Legend AI.
Managing partner JD Sheard said the team conducted institutional due diligence, raised internationally and completed seven investments simultaneously.
“The founders who partnered with us early, before the fund had a track record, gave us something to show every investor who came after,” he said.
Garratt previously spent four years advising founders and researchers through the federal government’s Entrepreneurs’ Programme. Sheard built and exited a technology services business operating across Australia, North America and the UK.
Eastend supports portcos with commercialisation, recruitment, governance, international expansion and subsequent fundraising. Several are already progressing towards follow-on rounds.
