Sydney-based Southern Cross Venture Partners has been appointed by the federal government as fund manager of Australia’s largest renewable energy venture capital fund, making available a total of $200 million to support renewable energy companies from early next year.
The federal commitment of $100 million through the Renewable Energy Venture Capital Fund will be matched dollar for dollar by Softbank China Venture Capital, which is involved in venture capital cross the Asian region and the fund will actively seek further private sector funding to support its portfolio of companies.
The Southern Cross Renewable Energy Fund will form part of the Commonwealth's $3.2 billion Australian Renewable Energy Agency.
The $200 million fund will assist high-potential Australian renewable energy start-up companies by making critical, early-stage equity investments.
Resources and energy minister Martin Ferguson launched the fund yesterday and said while Australia has many innovative companies developing renewable energy technologies, early-stage companies with a limited operating history have found it difficult to source venture capital.
“This fund will provide capital finance and active management to help promising Australian renewable energy companies achieve commercial success in Australia and overseas markets.
“The Australian Government has a strong record of delivering support to the renewable energy sector and this is yet more evidence of our commitment to innovation.”
Southern Cross Venture Partners has international presence in California's famed venture capital haven Silicon Valley and Shanghai.