Outset Ventures Closes NZ$41.5M Fund to Boost New Zealand’s Deep Tech Startups

Auckland-based venture capital firm Outset Ventures has closed its second fund at NZ$41.5 million (US$25.5 million), surpassing its initial target of NZ$30 million. The fund attracted commitments from over 150 investors and will be directed toward backing startups in New Zealand’s deep tech sector, including those focused on energy generation, storage, aerospace, and medical technology.

Outset Ventures, known for nurturing companies like Rocket Lab and LanzaTech, aims to support hard science and engineering breakthroughs through Fund II. The firm views New Zealand as well-positioned to lead in addressing energy and infrastructure challenges, particularly as global demand strains existing systems. Notable portfolio startups include Energy Bank and Open Star. 

The New Zealand government, through NZ Growth Capital Partners, contributed an additional $15 million to Fund II via its Elevate NZ Venture Fund. This support follows a $100 million top-up announced in the 2025 national budget, reinforcing public backing for technology-driven ventures. Outset’s general partner Angus Blair emphasized that New Zealand’s founders have consistently tackled complex problems, and the new fund ensures that innovative ideas receive both early-stage and scaling capital.

Outset’s Future House, a 5,000-square-meter campus equipped with specialized labs and workshops, plays a vital role in nurturing these startups. Sir Peter Beck, founder and investment committee member of Rocket Lab, noted that the facility has evolved from humble beginnings into a hub for cutting-edge engineering and innovation. Fund II continues to drive this momentum by supporting the next wave of promising deep-tech companies.

Energy and infrastructure challenges related to the rapid growth of AI technologies are a major focus for Outset. Many startups in their portfolio work on developing cleaner, more affordable energy solutions and advanced storage systems. For example, OpenStar, a nuclear fusion company, recently achieved a key milestone by generating superheated plasma, marking a significant step toward practical fusion energy. Another firm, EnergyBank, is developing long-duration energy storage designed for offshore wind farms, which could greatly enhance the value and reliability of renewable power sources in Europe and beyond.

Although Outset’s $25 million fund may seem modest compared to Silicon Valley standards, Blair pointed out that it is well-suited to New Zealand’s efficient and high-quality startup ecosystem. The local venture scene favors sustainable growth and technical excellence over rapid scaling. Following a dip in investment activity in 2023, the market rebounded strongly in 2024, reaching a record $350 million in venture funding. 

Since launching its initial $12 million fund in 2021, Outset has supported over 26 startups focused on areas like energy generation and storage, aerospace, industrial electrification, sovereign capabilities, and medical technology. This strong foundation encourages founders and investors alike to pursue ambitious, high-impact projects within these highly technical fields.