Blackbird defies odds with $500m raising

The venture capital outfit is now the largest in Australia, having committed more than $1.24bn in funds to date.

Blackbird Ventures partner Samantha Wong. Source: Supplied.

Canva investor Blackbird Ventures has defied the COVID-19 pandemic to raise a $500m fund, led by local superannuation heavyweights including AustralianSuper, Hesta, the Future Fund, Telstra Super and more.

The venture capital outfit, which owns a 14 per cent stake in Canva — more than any other investor — is now the largest in Australia, having committed more than $1.24bn in funds to date.

Atlassian co-chief executive Mike Cannon-Brookes has also taken on a role at Blackbird’s board of directors as its chairman.

Blackbird partner Nick Crocker told The Australian his company’s long-term relationships with partners including superannuation funds made it possible to close a $500m raise during a global health pandemic.

“We’ve been fortunate to be able to rely on those relationships, and our track record,” he told The Australian. “Through a time of really intense uncertainty, there was definitely a moment of pause, but ultimately we’ve built those relationships over time and that pretty strong history of success has been confirmed.”

The firm is planning to deploy the funding to support Australian start-ups. Blackbird’s first investment in Canva of $US250,000 ($350,000) was made before there was a product, and it has now invested a total of $US110m into the global company.

Other investors to pour money into Blackbird’s $500m fund include institutional clients of Cambridge Associates, First State Super, Cendana Capital, Greenspring Associates and Pavilion Capital.

“This latest raise is evidence of how much Australia’s start-up ecosystem has evolved since 2012 when Blackbird was founded,” a company statement said.

“In 2012, there was almost no venture capital left in Australia. Paradoxically, this was just as the start-up ecosystem was starting to succeed, with start-ups like Atlassian, Aconex, Campaign Monitor and Retailmenot.

“These companies were founded by highly ambitious, product-obsessed Australians who dared to attack global markets right from the beginning.

“Blackbird was founded because we saw the opportunity to build a new venture capital firm specifically designed to be useful to these kinds of founders.”

The company employed five people at the beginning of its third fund, currently has 22 staff and says it has plans to grow to 40 by the end of 2021.

Blackbird is the major backer of so-called tech “unicorns” Canva, Zoox, SafetyCulture and Culture Amp, as well as potential future unicorns like Propeller, Baraja, Gilmour Space, Proxy, Harrison AI, and nura which are each worth over $100m.

Mr Cannon-Brookes said in a statement: “Blackbird is three things at once — a start-up, an investment firm and an incredibly talented group of people backing ambitious founders. I share with the team a deep belief that the world change comes from entrepreneurs who are wildly wrong, then wildly right.

“I’m honoured to be able to help the team on their next stage of growth.”