Australian venture capital firm Square Peg Capital will soon be toasting a rich profit on its investment in an Israeli start-up it first backed in 2020, when it is acquired by artificial intelligence chip titan Nvidia for $US300 million ($447 million).

The acquisition of Deci – which has not yet closed – by the third most valuable company in the world will represent a prized exit for the Melbourne-based VC firm, in a market when cash returns are relatively rare.