Newly launched investment fund Purpose Ventures has boosted its war chest to $45 million and made its third commitment, to a local education startup.
Newly launched investment fund Purpose Ventures has boosted its war chest to $45 million and made its third commitment, to a local education startup.
Backed by the Steinberg Family Office, the early-stage venture capital limited partnership fund said it has received another $8 million since its launch when it closed its initial raising in March with $37 million.
The fund, run by Derek and Kylie Gerrard, also revealed it had been the lead investor in a $1.3 million fund raising by Perth-based education player Innovation Design Entrepreneurship Academy, which is known as IDEA.
Mr Gerrard told Business News Purpose had now committed $2 million across its first three investments, being PlanCare, a technology platform that enables self-managed healthcare-at-home services, Paperly, a parent accessible platform that helps schools reduce the administration load on their teachers and staff, and IDEA.
IDEA, which provides an alternative education pathway for senior school students that want to focus more on entrepreneurial, innovation and creative skills, a focus that in many ways mirrors the philanthropic drivers of Malcolm Steinberg’s Malka foundation.
The startup was launched by educators Nicole Gazey and Rebecca Loftus in 2021 after participating in Plus Eight 2020 accelerator program.
In the last two years, Purpose said IDEA had educated more than 100 students, grown to a staff of 13 and launched an online platform. The investment from Purpose and other investors will fund geographic growth, beginning with the Peel region.
“With less than 1 per cent of VC funding historically going into 100 per cent female-founded and -led businesses in Australia, we are particularly excited to have this opportunity to back Nicole and Rebecca, as incredible female founders,” Ms Gerrard said regarding the IDEA investment.
Purpose said it has received more than 160 investment applications, with more than half of these coming from WA based companies.
The fund manager has committed to investing at least 70 per cent of its fund into WA founded or operated companies. It hopes to have $6-8 million invested by the end of next year.
At $45 million, it claims to be one of the largest first-time funds to be established in Australia.
The fund is made up entirely of Western Australian investors – being a blend of about 40 per cent corporate investment and 60 per cent from high-net-worth individuals.
