Eastend Ventures Launches $50M Fund To Back Overlooked WA, SA, And QLD Startups

A new player has entered the Australian venture capital scene with a specific focus on nurturing early-stage startups in Western Australia, South Australia, and Queensland. Eastend Ventures has officially announced the first close of its debut fund, securing over $10 million towards a $50 million target.

The fund, which is the first in South Australia to gain full approval as an Early Stage Venture Capital Limited Partnership (ESVCLP), will target up to 30 high-growth, business-to-business (B2B) companies. The ESVCLP structure offers significant tax incentives to investors, a mechanism historically concentrated in the venture capital hubs of New South Wales and Victoria.

Eastend Ventures aims to rectify the geographic imbalance in capital allocation. According to government data for 2023/2024, a mere 1.06% of all ESVCLP investment flowed into Western Australia, with South Australia and Queensland receiving 1.85% and 6.65% respectively. In stark contrast, 16.18% of funding was directed overseas.

“Most Australian ESVCLP investment is deployed to companies in Sydney and Melbourne due to their proximity to the major venture capital markets,” said Eastend Ventures’ co-founder Josh Garratt. “But historically, some of the country’s most exciting companies and standout successes have started in our markets.”

The fund’s investment thesis is centred on backing early-stage companies with global potential and realistic pathways to liquidity. Co-founder JD Sheard, a Canadian entrepreneur who has exited a multinational technology business, emphasised a pragmatic approach to returns.

“We’re not chasing unicorns,” Sheard stated. “We’d rather pursue achievable sub-$500 million exits and return capital within a reasonable timeframe to support our investors’ goals and the needs of the ecosystems we serve.”

This strategy is already being tested, with a proof-of-concept fund of 12 companies reportedly on track for its first profitable exit in under three years.

A shifting WA capital landscape

The arrival of Eastend Ventures adds another significant source of early-stage capital for Western Australian startups, contributing to a landscape that has evolved considerably in recent years. For a long time, WA founders looked primarily to the eastern states for venture funding.

Now, a growing contingent of local and interstate funds are actively deploying capital within the state. Perth-based Purpose Ventures, led by a collective of local tech leaders, has been a prominent force, investing in WA-based startups with a global ambition. Similarly, FundWA provides crucial seed-stage funding and mentorship.

The increased local activity has been complemented by a growing interest from East Coast firms. Melbourne’s Skalata Ventures, for instance, has made a concerted effort to source deal flow from Western Australia, recognising the quality of innovation emerging from the state.

Eastend Ventures’ commitment to dedicating a portion of its $50 million fund to WA adds further momentum. Their focus on “overlooked” markets suggests a willingness to dig deep into the local ecosystem to find and back promising B2B ventures that might have previously struggled for visibility. This increased competition and availability of capital can only be a positive development for the burgeoning WA startup community, providing founders with more options and opportunities to scale their businesses.