VC Square Peg Delivers $1.1 Billion to Investors, Prepares for Sixth Fund Launch

• VC Square Peg has returned $1.1 billion to investors, gearing up for its sixth fund
• Exits across 14 portfolio companies include mergers, acquisitions, secondary market sales, and public floats
• Canva remains a key investment for Australian venture capital with significant returns
• Square Peg’s exit returns average 6.1x across companies, with an IRR of 44%
• Square Peg backs Australian tech unicorns like Canva, Airwallex, and Rokt, preparing for public listings

VC Square Peg Returns $1.1 Billion to Investors

Venture capital firm VC Square Peg has made waves in the investment world by returning an impressive $1.1 billion to its investors, setting the stage for the launch of its sixth fund. The firm’s success can be attributed to its strategic investments in a diverse range of companies, resulting in significant returns for its stakeholders.

The exits across 14 portfolio companies have been a key factor in VC Square Peg’s success story. These exits have included mergers and acquisitions, secondary market share sales, and public floats. Companies such as CalReply, UHG, Puresec, and SMI have all contributed to the firm’s impressive track record.

Canva: The Jewel in the Crown

One standout success story for VC Square Peg has been its investment in Canva, the privately-owned design platform. Canva has proven to be a lucrative investment, with VCs, including Blackbird, selling portions of their holdings in the company. As VC Square Peg’s initial funds reach their decade-long lifespan, Canva remains a shining example of Australian venture capital success.

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Around 75% of VC Square Peg’s total returns, amounting to $836 million, have come from its first fund. The recent exit from Canva alone contributed 40% of the total returns. The firm’s exit returns have shown an impressive average multiple of 6.1x across its portfolio, with an internal rate of return (IRR) of 44%.

The success of VC Square Peg’s investments is further highlighted by the distributed to paid-in capital (DPI) ratio, which now sits at 4.6x for its first fund established in 2012. These strong financial indicators demonstrate the firm’s ability to generate substantial returns for its investors.

Gearing Up for Public Listings

Looking ahead, VC Square Peg is poised for continued success with its backing of a trifecta of Australian tech unicorns – Canva, Airwallex, and Rokt – all gearing up for public listings in the coming years. Melbourne-born fintech Airwallex, valued at US$5.5 billion (A$8.5bn), is preparing for an IPO by 2026.

Rokt, a US-based company in which VC Square Peg has invested multiple times, is also on track for an IPO. The firm’s recent participation in a secondary market sale saw Rokt’s valuation rise significantly, setting the stage for a successful public listing.

Canva, with its upcoming public listing plans, is another key player in VC Square Peg’s portfolio. The company’s recent share sale has generated significant interest, with a public listing slated for 2026. Additionally, VC Square Peg’s involvement in companies like Stripe further solidifies its position as a strategic investor in high-growth ventures.

Building a Strong Team and Global Presence

In addition to its successful investment strategies, VC Square Peg has been focusing on strengthening its leadership team. Leila Lee, who was recently promoted to partner, brings a wealth of experience to the firm. Her leadership in capital raising and investor relations functions has been instrumental in the firm’s success.

Paul Bassat, the cofounder of VC Square Peg, expressed his satisfaction with the firm’s returns and highlighted Lee’s contribution to the company. The promotion of Lee to partner underscores the firm’s commitment to nurturing talent and driving continued growth.

As VC Square Peg prepares for its sixth vintage of funds, the firm is set to expand its global presence across key regions such as Australia, Southeast Asia, and Israel. With offices in Sydney, Melbourne, Singapore, and Tel Aviv, the firm is well-positioned to capitalize on emerging opportunities in the tech and venture capital landscape.

VC Square Peg’s impressive track record of returns, strategic investments, and global outlook position it as a key player in the venture capital industry. With a focus on backing innovative startups and fostering growth, the firm is poised for continued success in the dynamic world of investments.