Key Takeaways
- • Square Peg has closed more than A$1 bn across Fund 6 and Opportunities Fund 3, its largest fundraising round since its founding in 2012 by Paul Bassat and Tony Holt.
- • Roughly 40% of commitments went to Fund 6, the early-stage vehicle (seed through Series B), with the remaining 60% directed to Opportunities Fund 3 for larger and later-stage rounds.
- • The firm did not disclose the exact total or individual fund sizes; final closes were completed in the first half of 2026, according to its July investor letter.
- • The raise exceeds the approximately A$860 mn Square Peg secured in its 2022 fundraising round, and it targets AI, fintech and SaaS companies across Australia and New Zealand, Southeast Asia and Israel.
- • The two-fund structure separates early-stage and growth-stage exposure for limited partners and gives portfolio companies access to follow-on capital during a period of tougher fundraising conditions.
Summary
Australian venture capital firm Square Peg has raised more than A$1 bn across two investment vehicles, Fund 6 and Opportunities Fund 3, completing its largest fundraising to date. According to the firm's July investor letter, the final closes were completed during the first half of 2026. Square Peg confirmed the combined amount exceeded A$1 bn but did not disclose the exact total or the individual fund sizes. Approximately 40% of commitments were allocated to Fund 6, which makes initial investments from seed through Series B, while the remaining 60% went to Opportunities Fund 3, which provides larger investments to more mature businesses, including existing portfolio companies.
The latest raise exceeds the approximately A$860 mn the firm secured in its 2022 fundraising round. Founded in 2012 by Paul Bassat, a co-founder of employment marketplace SEEK, and former investment banker Tony Holt, Square Peg invests primarily in artificial intelligence, fintech and software-as-a-service companies. Its strategy covers Australia and New Zealand, Southeast Asia and Israel. Portfolio companies cited include Canva, Airwallex, Rokt and Supabase. Leila Lee, who joined in 2017 as Head of Distribution, has since become a member of the Square Peg partnership.
The two-fund structure addresses a common venture challenge: balancing early-stage discipline with the capital needs of companies as they scale. It also separates early- and growth-stage exposure for limited partners, whose risk preferences may differ. The roughly 60% weighting toward Opportunities Fund 3 signals substantial capacity for later-stage deployment, though the vehicle can also invest outside the current portfolio. For founders, the structure offers a firm able to participate in successive rounds, and existing backed companies may benefit from additional funding capacity at a time when many startups still face valuation adjustments, difficult fundraising conditions and extended timelines to liquidity.
The raise also points to continued institutional demand for established Australian venture managers operating internationally. Performance across the two vehicles will depend on investment selection, entry valuations, portfolio growth and the firm's ability to generate exits across successive fund generations.
The latest raise exceeds the approximately A$860 mn the firm secured in its 2022 fundraising round. Founded in 2012 by Paul Bassat, a co-founder of employment marketplace SEEK, and former investment banker Tony Holt, Square Peg invests primarily in artificial intelligence, fintech and software-as-a-service companies. Its strategy covers Australia and New Zealand, Southeast Asia and Israel. Portfolio companies cited include Canva, Airwallex, Rokt and Supabase. Leila Lee, who joined in 2017 as Head of Distribution, has since become a member of the Square Peg partnership.
The two-fund structure addresses a common venture challenge: balancing early-stage discipline with the capital needs of companies as they scale. It also separates early- and growth-stage exposure for limited partners, whose risk preferences may differ. The roughly 60% weighting toward Opportunities Fund 3 signals substantial capacity for later-stage deployment, though the vehicle can also invest outside the current portfolio. For founders, the structure offers a firm able to participate in successive rounds, and existing backed companies may benefit from additional funding capacity at a time when many startups still face valuation adjustments, difficult fundraising conditions and extended timelines to liquidity.
The raise also points to continued institutional demand for established Australian venture managers operating internationally. Performance across the two vehicles will depend on investment selection, entry valuations, portfolio growth and the firm's ability to generate exits across successive fund generations.
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