Sydney venture capital firm Carthona Capital has reached a $100 million first close for its third fund which has a target of $200 million.
Industry super fund HostPlus, an investor in Carthona’s second fund, has cornerstoned the first close. The raise has also been supported by family offices and high net-worth investors.
Carthona was founded in 2014 as a deal-by-deal investment partnership and was able to raise a first fund after achieving some early successes. The firm follows a highly thematic approach to investing, selecting a limited number of specialised areas in which to invest. To date, the main focus has been on fintech businesses. With the new fund, the firm plans to focus on Web3 businesses. This will build on the earlier emphasis as many of these new generation online businesses are expected to manage finances through embedded blockchain technologies.
Carthona seeks to invest as early as possible, usually at pre-seed, seed or Series A stage but has a long hold strategy. The firm works closely with its investee companies on their operations and makes substantial follow-on investments as they mature. Carthona has invested in eight successive funding rounds in one investee.
Carthona’s early successes included being the first backer of Credible Labs. The consumer finance fintech was set up in 2012 by Stephen Dash who had been an investment colleague of Carthona co-founder Dean Dorrell at M.H. Carnegie & Co. Credible Labs listed on the ASX in 2017 and was acquired by Fox Corporation in 2019 in a deal that valued the business at $585 million. At that time, Carthona still held close to 5% of the company.
Along with the first close of the new fund, Carthona announced the promotion of chief operating officer Simone Lander and investment director Damian Fox to partner status. They join Dorrell and co-founder James Synge. Lander and Fox have both been with the firm since it was founded.
Image: Carthona Capital co-founder Dean Dorrell.