Icehouse Ventures’ new $30M fund raised half its target in one month, creating faster funding opportunities for New Zealand startups.
New Zealand startups now have a faster path to funding as Icehouse Ventures’ latest $30 million seed fund raised half its target in just one month, signaling strong investor appetite for early-stage Kiwi companies.
The Wellington-based VC firm’s Seed Fund IV aims to back 30 promising startups over the next three to four years, offering funding from pre-seed concepts through to pre-Series A companies. With 80 investors already committed to the $15 million first close, the fund represents a significant opportunity for entrepreneurs seeking capital in an increasingly competitive market.
“The enthusiasm for this fund speaks to New Zealand’s consistent production of high-value startups for 10 years running,” said Icehouse Ventures CEO Robbie Paul. “If Funds 1 and 2 were thanks to the aspiration of investors for New Zealand, Funds 3 and 4 are thanks to entrepreneurs delivering on those aspirations.”
Track record justifies investor confidence
The firm’s performance validates the investor rush. Their inaugural fund ranks in the top 10% globally for cash returns among over 2,000 venture firms, according to 2024 Carta data. Notable exits include Tradify, which sold at a 23x multiple, while portfolio company Halter achieved unicorn status.
Fund I also backed Dawn Aerospace and Sharesies, while subsequent funds invested in companies like Mint Innovation, Vessev, Tracksuit, and Ternary Kinetics. Paul credits this success to sticking with their core expertise. “Investing in and supporting early-stage startups is what we know and what we are known for. We have been rewarded for sticking to our knitting and that is what we are doing with Seed Fund IV,” said Paul.
From concept to IPO under one roof
Icehouse has evolved beyond traditional seed investing into what Paul calls “vertical integration,” supporting companies from pre-seed concepts through pre-IPO stages. This approach creates a flywheel effect where seed funds benefit from growth fund firepower in later rounds, while growth funds access premium deal flow from earlier investments.
The strategy’s breadth was evident in a recent week when Icehouse simultaneously processed a $45 million Series D investment in Halter, now a 200-employee company with over $50 million in revenue across three countries, while also backing Harth, a two-person AI startup with no revenue.
“The seed funds are advantaged because growth funds bring extra fire power in the later rounds. Our growth funds are advantaged because of the deal flow from our seed funds,” said Paul.
Learning from mistakes and missed opportunities
Harth, Fund IV’s first investment, focuses on AI-powered collaborative building design. Co-founder Tom Batterbury, previously of Auror and New Zealand EY Entrepreneur of the Year, praised the investment process speed. “We’ve been impressed by the speed and conviction Icehouse Ventures brought to backing us,” said Batterbury. “The NZ venture ecosystem has come a long way since Scott and I raised our first rounds with our previous startups over a decade ago.”
Paul acknowledges the learning curve, with 14 portfolio companies failing and missed opportunities including Kami and Auror. “Our mistakes since 2016 have been as formative as our successes,” Paul said. “The good news is the same team who celebrated our successes and learned from our mistakes are back again for this fund.”
The fund targets 30 investments over three to four years, from pre-seed concepts to pre-Series A companies. The minimum investment is $50,000, paid in 25% tranches, available to wholesale investors only. Icehouse Ventures manages over $500 million across funds and maintains a portfolio of more than 365 companies.
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