It claims its success is built on the idea that money can be used to create a path to a higher future, and says it’ll most productive invest in ethical companies and establishments that have certain impact on of us, the planet and animals.
Main Sequence turns into Australian Ethical’s third undertaking capital fund funding after Apt Click on Capital’s Development Fund and Artesian’s Clean Energy Seed Fund.
Australian Ethical’s head of asset allocation, John Woods, said Main Sequence was uniquely positioned among local VC funds to avoid overpaying for stakes in start-ups, in a rapidly heating market, because of its company creation model.
This means that, not like other funds that most productive invest in present start-ups, Main Sequence also makes use of its community of specialists thru CSIRO to create recent companies from scratch. It calls this a “undertaking science” model and was how v2Food came into existence.
“When there is a race of capital into a space it can be challenging for valuations, and uniquely Main Sequence has a resolution to clear up that,” Mr Woods said.
“They don’t have to pay a few of the potentially exaggerated valuations to try and clear up these complications, so from an funding level of view that was really important for us.”
He said Main Sequence represented a significant allotment of Australian Ethical’s VC allocation and he expected this to develop quickly in the near term.
Main Sequence partner Mike Zimmerman said he believed it was important for a prolonged-term funding fund such as Main Sequence, which was attempting to back start-u.s.on a race that may last a decade or more, to catch backers that had a similar strategy and mission.
“Aussie Ethical stands out as one in all the supreme that you can think investors that we may ask for,” he said.
“Given their prolonged history in this space, they match what we are attempting to earn by way of solving tall complications for the planet.”
He said Australian Ethical’s funding in Main Sequence mirrored broader trends in institutional markets and corporations the place environmental, social and corporate governance performance is being taken far more severely than in the past.
Australia and Original Zealand Banking Community chairman Paul O’Sullivan said last week the majority of the time he has spent with the bank’s institutional investors since changing into chairman nearly a year ago has been on discussions about the bank’s ESG policies.
“Institutions actually want to invest for impact, and it doesn’t necessarily mean you ought to compromise profit; you aloof have to hit your quarterly numbers,” Mr Zimmerman said.