Advance VC Raises $15M to Unlock Liquidity in Australia’s Venture Market

Melbourne-based Advance VC has secured nearly half of its targeted $15 million to boost liquidity options for Australia’s venture capital market. Launched in May, the fund marks the country’s first dedicated “fund of funds” with a focus on secondaries, addressing growing demand from limited partners (LPs) and general partners (GPs) as startups remain private for longer and traditional 10-year fund cycles stretch beyond their timelines.

The new vehicle has already attracted prominent backers, including Stake founder Matt Leibowitz and Decjuba owner Tania Austin, and has completed investments in 11 VC funds such as Blackbird. Advance VC is known to be a buyer of unwanted stakes in existing venture funds, providing liquidity for investors facing portfolio rebalancing, financial stress, or other personal circumstances.

Advance VC was founded by Max Kausman, a former investor at Sydney-based Tidal Ventures. He describes the firm as Australia’s first dedicated VC fund-of-funds focused on secondaries, created to meet growing demand for liquidity as startups delay exits and fund cycles extend well beyond a decade.

“The maturation of the Australian VC ecosystem has created the opportunity and need for a specialised buyer of fund secondaries,” Kausman said. “Advance VC’s model has been embraced by sellers looking to cash out, fund managers appreciating that liquidity is critical to a healthy market, and by investors who recognise now is an opportune time to deploy while others are stepping away.”

The fund has already completed 11 secondary transactions with both established and emerging venture managers, securing exposure to more than 200 startups. Its portfolio includes indirect holdings in high-growth companies such as Canva, Airwallex, PsiQuantum, Zeller, and Employment Hero. The average holding is six years old, and the fund is targeting an internal rate of return (IRR) of 20%.

Advance VC usually commits between $100,000 and $2 million to each transaction, purchasing stakes below the reported net asset value of funds. The model enables investors to unlock cash sooner—whether they are rebalancing portfolios, dealing with financial stress, retiring, or navigating personal events such as divorce—without waiting for portfolio companies to list or be sold.

The strategy has attracted a roster of high-profile supporters, including Stake founder Matt Leibowitz, Decjuba owner Tania Austin, former SmartGroup CEO Deven Billimoria, tech entrepreneurs Nathan Cher and Rowan Simpson, Blackfox Property’s Marc Schwartz, and Luxem, the Slattery family office. The fund has also secured backing from LaunchVic, Victoria’s startup agency.

Supporters argue that Advance VC’s model strengthens the broader ecosystem. “The arrival of Advance VC in Australia is a positive step towards a mature and world-class local ecosystem,” said Dean Bergin, partner at LUXEM. “Advance VC offers an attractive investment product: broad coverage of high-performing tech companies in Australia, with a shorter timeline to liquidity. It provides sophisticated investors with uncapped upside through exposure to outlier outcomes, while being less concentrated than investments into single funds. LUXEM’s investment in Advance VC provides coverage of a range of strategies, providing a great complement to our investment in individual fund managers.”

Industry leaders also see benefits for founders and employees. Michael Batko, CEO at Startmate, said a thriving secondaries market helps early backers and company builders realise value sooner, while attracting more talent and capital into the sector. “A thriving secondaries market rewards people who’ve built or invested in great companies early. It also attracts more talent and investment into the ecosystem, which benefits everyone,” he said.

Image credits: Advance VC