New ‘fund of funds’ to democratise access to venture capital

FB Venture’s latest venture capital (VC) endeavour, a ‘fund of funds’ seeking to “democratise” access to “previously unavailable” opportunities for retail investors, has received the green light for launch after being awarded a grant from state start-up agency, LaunchVic.

The FB Ventures VC Fund of Funds has been touted as a “non-traditional VC fund” that will allow VC managers to tap into a “new pool of capital”, offering both wholesale and retail investors exposure to a variety of VC funds and strong-performing VC managers from across the start-up ecosystem.

FB Ventures Co-Founder, Anna Nedbaylova, said the new offering allows investors to access atypical opportunities that are traditionally unavailable and empowers Australians to harness a new source of wealth creation.

“FB Ventures’ Retail Fund of Funds offers retail investors previously unobtainable access to high-growth startups by investing across a diversified portfolio of leading VC funds, while also lowering the barriers to entry for wholesale investors.

“Direct startup investing can be risky due to illiquidity and concentration. Our structure offers a more considered entry point by investing through top-tier, professionally managed VC funds that provide diversification, governance oversight, and disciplined investment processes.

“We’re seeing a growing level of sophistication among retail investors who want to access venture opportunities. But right now, most Australians are excluded because these investments are limited to institutions and high-net-worth individuals with at least $2.5 million in assets or $250,000 in annual income.

“Our vision is to create an inclusive space where every investor looking to diversify into private markets and venture capital can find a home and where every VC fund looking to raise capital can participate.”

The new fund builds on FB Ventures’ existing expertise in multi-channel investment and capital raising solutions, with its platform combining several raising formats such as equity crowdfunding (CSF) and private syndicates (SPVs) to diversify its offering for both managers and investors.

“This model opens a new funding channel for VC funds – allowing them to broaden their investor base without increasing the administrative burden,” FB Ventures Co-Founder, Richard Mulligan, said.

“Think of us as a new institutional investor for VC funds. We act as the professional intermediary – managing the compliance, investor relations, and onboarding – so VC managers can focus on investing.”