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Hey followers! Today, let’s explore how New Zealand is making big waves in deep tech with Outset Ventures stepping up its game.
Outset Ventures, an Auckland-based firm known for nurturing unicorns like Rocket Lab and LanzaTech, just closed its second fund at an impressive oversubscribed $41.5 million NZD. The goal? Supporting startups pushing the boundaries of science and engineering, from space tech to medical innovations.
This fund aims to help companies tackle energy and infrastructure issues—areas where New Zealand’s small size can be an advantage. Outset believes the country is uniquely positioned to lead in these domains, especially where AI demands more energy. As Angus Blair, one of their partners, notes, their focus is on helping startups generate and store energy smarter and cheaper, addressing the bottlenecks AI and data centers face.
One standout is OpenStar, a nuclear fusion startup that made a significant breakthrough by creating plasma at 540,000°F using just $10 million—far less than traditional government projects. Another exciting company is EnergyBank, which develops long-duration energy storage for offshore wind farms, perfect for regions like the North Sea. Blair highlights that such innovations can increase asset profitability by up to 50% and bolster grid resilience.
Outset’s second fund emphasizes deep tech that can scale globally. They provide access to labs and engineering tools through their large facility in Auckland, making de-risking these advanced projects more feasible. Even with a modest $25 million, Blair notes it’s enough for New Zealand’s efficient startups to make a big impact, thanks to the country’s capital-tight but high-tech ecosystem.
Despite challenges like reduced venture funding in 2023, New Zealand saw a record $350 million investment in 2024, showcasing a strong rebound. The country’s international investors are mostly high-net-worth individuals and local institutions, supporting ambitious moonshots at home and abroad. Blair emphasizes that New Zealand’s history of deep tech success gives founders the confidence to aim big, even from a small island.
