Key Takeaways
- • Square Peg Capital has raised over $1 billion across two new funds, its largest fundraise to date, according to Forbes Australia and the firm's confirmation; the exact figure was not disclosed.
- • Roughly 40% of the capital is allocated to Fund 6, the early-stage vehicle, while about 60% went to Opportunities Fund 3, which backs larger companies in and out of the existing portfolio.
- • The raise exceeds the $860 million Square Peg secured in 2022 and makes it the second Australian VC to close a 10-figure raise this year, following Blackbird's record $1.05 billion sixth fund in August.
- • Square Peg reports more than $1.4 billion in exit returns across 19 companies since 2012, with a gross IRR of 41%.
- • Australian venture activity is recovering, with $1.7 billion invested in Q2 2026, up 60% year on year.
Summary
Australian venture capital firm Square Peg has raised over $1 billion across two funds, its largest fundraise to date, according to Forbes Australia. The two vehicles are Fund 6, its early-stage investment fund, and Opportunities Fund 3, which invests in larger companies both inside and outside its existing portfolio. Forbes Australia reports that roughly 40% of the capital went to Fund 6 and about 60% to Opportunities Fund 3. Square Peg confirmed the total exceeded $1 billion but did not disclose the exact figure. Co-founder Paul Bassat had earlier told investors in a July letter that a final close had been completed without disclosing the amount.
The raise is a meaningful step up from the $860 million Square Peg secured in 2022. It also makes Square Peg the second Australian VC to finalise a 10-figure fundraise this year, after Blackbird announced a record $1.05 billion for its sixth fund in August with backing from investors including Morgan Stanley, Schroders and Adams Street Partners. Forbes Australia characterises the mega-raises as a sign that the country's venture sector is recovering from a post-pandemic downturn, with $1.7 billion invested in the second quarter of 2026, a 60% year-on-year increase, though interest rates remain elevated.
Square Peg says it has returned more than $1.4 billion through exits in 19 companies since its founding in 2012, a gross IRR of 41%. Notable realised events in 2024 included the sale of its stake in Bugcrowd and sell-downs in Canva and Rokt, along with proceeds from Deci.ai's acquisition by Nvidia and PropertyGuru's acquisition by EQT. The firm's best-known bets include Canva, backed in 2013, and Airwallex, whose 2017 Series A it joined when Blackbird and Airtree passed. Other portfolio companies include Zeller, Neara and Deputy. Unlike Blackbird and Airtree, which have extended to Australian founders in the US, Square Peg has focused on Israel, where it has invested since inception, and Southeast Asia, where it opened a Singapore office in 2020.
Square Peg was established in 2012 by Paul Bassat and Tony Holt, a year after Bassat stepped down as CEO of Seek. Public reporting notes that the firm also holds positions in Stripe and Thinking Machines Lab.
The raise is a meaningful step up from the $860 million Square Peg secured in 2022. It also makes Square Peg the second Australian VC to finalise a 10-figure fundraise this year, after Blackbird announced a record $1.05 billion for its sixth fund in August with backing from investors including Morgan Stanley, Schroders and Adams Street Partners. Forbes Australia characterises the mega-raises as a sign that the country's venture sector is recovering from a post-pandemic downturn, with $1.7 billion invested in the second quarter of 2026, a 60% year-on-year increase, though interest rates remain elevated.
Square Peg says it has returned more than $1.4 billion through exits in 19 companies since its founding in 2012, a gross IRR of 41%. Notable realised events in 2024 included the sale of its stake in Bugcrowd and sell-downs in Canva and Rokt, along with proceeds from Deci.ai's acquisition by Nvidia and PropertyGuru's acquisition by EQT. The firm's best-known bets include Canva, backed in 2013, and Airwallex, whose 2017 Series A it joined when Blackbird and Airtree passed. Other portfolio companies include Zeller, Neara and Deputy. Unlike Blackbird and Airtree, which have extended to Australian founders in the US, Square Peg has focused on Israel, where it has invested since inception, and Southeast Asia, where it opened a Singapore office in 2020.
Square Peg was established in 2012 by Paul Bassat and Tony Holt, a year after Bassat stepped down as CEO of Seek. Public reporting notes that the firm also holds positions in Stripe and Thinking Machines Lab.
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