TRaCE launches Australian university’s first seed fund with reinvestment model, backed by Investible and Hampton Capital, to drive the growth of climate technologies.
TRaCE at UNSW has announced the launch of a groundbreaking $1.7 million Early-Stage Seed Fund, marking a first-of-its-kind reinvestment model. TRaCE will co-fund high-potential startups and scale-ups in partnership with VCs and offer a buy-back option, allowing its shares in the invested company to be bought out by the partnering VC. Investible and Hampton Capital have been selected to participate in this innovative co-investment and buy-back scheme. This approach enables TRaCE to reinvest initial funding into new ventures, creating a continuous cycle of funding, support, and innovation, while setting a new standard for collaboration between capital partners and universities. Innovators involved in one of TRaCE’s programs at UNSW or the University of Newcastle are eligible to apply.
Designed to address a critical funding gap that often deters private investors from supporting early-stage climate deep tech ventures, the fund will accelerate the growth of promising clean energy and recycling spinouts, startups and scale-ups. This co-investment and buy-back scheme is pioneering for an Australian university and is modelled after similar programs used in Israeli and Singaporean ecosystems.
The collaboration with VC Partners addresses the multiple “Valleys of Death” faced by climate tech startups, where high costs and unproven market traction deter private investment. By de-risking startups, TRaCE aims to attract more investor interest at this earlier crucial stage, helping them scale and reach market readiness. The first co-investment between TRaCE & Investible, announced in August, was with DeCarice, a hydrogen diesel hybrid technology startup.
This fund aligns with TRaCE’s mission to support as many climate tech entities as possible, focusing on building a sustainable pipeline of seed funding. If successful, the fund’s profits could be reinvested in new startups, establishing a legacy of ongoing support for climate technologies through UNSW.
“This partnership sets a new standard for TRaCE. By combining TRaCE’s research and R&D capabilities with the unique strengths of each VC partner, startups and scaleups will benefit specifically from the expertise of the VC that co-invests, creating a tailored pathway for their growth,” said Gabriella Nunes, Research & Commercialisation Director at TRaCE. “Through this co-investment scheme, our goal is to provide more funding to high potential technologies, attract VCs in earlier, and build a sustainable cycle of capital for the university to re-invest into a greater number of startups”.
Charlie Ill, CEO of Investible, brings experience from similar co-investment models overseas and is optimistic about their potential in Australia. “TRaCE’s open-mindedness to new models and willingness to co-create this solution with Investible is a tremendous start,” Ill said. “This partnership amplifies our investment capabilities and enhances the pathways for university spin-offs to access vital resources and markets”.
This collaboration strengthens the ties between universities and venture capital firms, enabling parties to leverage their unique advantages. TRaCE offers access to cutting-edge research, experts and R&D acceleration, while for example, Hampton Capital brings proven expertise in climate tech investments and established relationships in the ASEAN markets. “Together, we are creating a robust ecosystem that de-risks climate technologies,” said Thomas Brunton, Investment Director from Hampton Capital.
As a prime example of the model in action, DeCarice has experienced substantial growth through comprehensive support. Initially funded through TRaCE’s R&D Project fund, DeCarice transitioned into a spinout through the TRaCE Climate 10x accelerator, paving the way for Investible’s recent pre-seed investment. Additionally, TRaCE has facilitated the funding of Industry PhDs, enabling a commercially focused researcher to be seconded to DeCarice, further enhancing its innovative capacity.
“The full ecosystem has been essential in our journey from lab to market, providing not only capital but also the critical support needed to attract VC funding and drive our growth,” said Goran Bozic, CEO of DeCarice.
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About Investible
Investible is an Asia-Pacific-based early-stage venture capital firm. Its mission is to connect ground-breaking companies with the capital, expertise and networks they need to realise their potential on a global scale.
Founded in 2014 and with offices in Sydney and Singapore, its unique approach to early-stage tech investment sees its generalist and climate tech VC Funds co-investing alongside members of Club Investible, its active, global investor syndicate and community.
The Investible portfolio includes more than 150 early-stage companies across 12 countries and 20 sectors including Canva, Ipsy, Car Next Door, Quantum Brilliance, Applied EV and more.
More at https://investible.com
About Hampton Capital
Hampton Capital is a venture capital firm specializing in mid-market transformations. In partnership with its accelerator arm, Hampton Accelerate, it identifies untapped market opportunities and works closely with experienced management teams to drive sustainable growth and deliver long-term value.
Targeting high-growth sectors and industries undergoing structural shifts or disruptive changes, Hampton Capital employs a strategic, hands-on approach combined with disciplined investment practices to guide companies through pivotal transitions. Its diverse portfolio exemplifies a dedication to leveraging deep expertise and fostering strong partnerships, creating resilient businesses ready for global success.
