Outset Ventures Fuels NZ Deep Tech with $25M Fund

Auckland-based Outset Ventures, known for backing unicorns like Rocket Lab and LanzaTech, has closed its second fund at an oversubscribed NZ$41.5 million (US$25 million).

This fund focuses on "deep tech" startups tackling complex scientific and engineering challenges. Outset believes New Zealand is ideally positioned to lead in areas like aerospace, medical technology, and especially energy generation and storage.

We know AI growth depends on energy access. That's where we're focusing.

— Angus Blair, Partner at Outset Ventures

Investing in Clean Energy Solutions

Many Outset portfolio companies develop cheaper, cleaner energy solutions. They address energy generation, storage, heat waste recycling, and infrastructure limitations impacting AI development.

OpenStar, a nuclear fusion startup developing levitated dipole reactors, received funding from both Outset funds. Last November, OpenStar achieved a key milestone by creating superheated plasma, a crucial step towards fusion energy.

EnergyBank is another key investment. They are building long-duration energy storage for floating offshore wind farms, particularly suited for deeper waters like the North Sea.

Firming power with long-duration storage increases profitability and supports grid resiliency, especially in Europe.

— Angus Blair, Partner at Outset Ventures

Supporting Kiwi Innovation

OpenStar and EnergyBank exemplify Outset's commitment to scaling globally impactful ventures. Fund II aims to launch companies with strong scientific foundations and international ambitions.

Outset's 60,000 square-foot Auckland facility provides portfolio companies with essential lab and engineering equipment, crucial in New Zealand's resource-constrained environment.

While US$25 million may seem modest compared to Silicon Valley, it's significant for New Zealand's capital-efficient ecosystem.

New Zealand's Growing Venture Landscape

New Zealand's startup scene prioritizes capital efficiency and technical excellence. After a dip in 2023, venture investment rebounded to a record NZ$587.6 million (US$350 million) in 2024.

Two-thirds of Outset Fund II comes from local sources, with the remainder from international high-net-worth individuals investing in New Zealand's future.

Despite attracting global investors, accessing international capital networks remains a challenge for Kiwi startups. However, Outset believes New Zealand's deep tech expertise positions it to address global challenges.

Deep tech is where New Zealand's biggest venture wins originate. Founders and VCs are empowered to pursue ambitious projects in these technical fields.

— Angus Blair, Partner at Outset Ventures