Outset Ventures, a New Zealand-based venture firm known for backing Rocket Lab and LanzaTech, has closed a second fund with $25 million USD (NZD $41.5 million) to support early-stage deep tech startups.
The Auckland-based investor is focusing its new fund on science-driven companies solving real-world infrastructure challenges, particularly in energy generation, storage, and sustainability. With the rise of AI creating downstream demand on energy systems, Outset Ventures believes New Zealand is well-positioned to lead innovation in these spaces.
“We know the biggest constraint for AI growth is energy access,” said partner Angus Blair. “That’s where we’re concentrating our attention.”
Startups like OpenStar, a nuclear fusion company working on levitated dipole reactors, and EnergyBank, which is building long-duration storage for offshore wind farms, are among the firm’s top bets. OpenStar recently achieved superheated plasma at 540,000°F — a milestone toward fusion power — on a fraction of typical fusion R&D budgets.
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A launchpad for globally ambitious Kiwi deep tech
Outset Ventures offers more than capital. Its 60,000-square-foot facility in Auckland gives startups access to specialized lab and engineering equipment. This integrated support structure is rare in New Zealand, where technical infrastructure and early-stage capital are limited.
While $25 million might sound modest by U.S. standards, it goes far in New Zealand’s capital-efficient ecosystem. In fact, 2024 marked a record year for Kiwi venture funding, with $350 million invested — up 53% from 2023.
Backed by a local-global investor mix
Two-thirds of the capital came from New Zealand institutions and individuals, with the remaining portion raised from international investors, many of whom have relocated to the region. Despite interest from global firms like Founders Fund and Khosla Ventures, local startups still face hurdles accessing international capital networks.
Doubling down on technical ambition
With this new fund, Outset Ventures hopes to solidify its role as a launchpad for high-impact science startups from New Zealand. Blair says local founders feel increasingly empowered to pursue moonshot ideas, particularly in domains where the country has a proven track record.
“It’s where our biggest wins have come from historically,” he said. “There’s a growing license to take bold, technical swings.”
