Outset Raises $25M to Fuel New Zealand’s Deep Tech Moonshots: Rocket Lab Backer Invests in Energy and Infrastructure
Auckland-based venture firm Outset Ventures has secured $25 million in funding to bolster New Zealand’s deep tech sector. The firm, known for spinning out successful companies like Rocket Lab and LanzaTech, closed its second fund at an oversubscribed $41.5 million NZD, signaling strong investor confidence in the region’s potential.
Outset Ventures aims to support startups working on groundbreaking scientific and engineering advancements. They believe New Zealand is uniquely positioned to lead in areas such as aerospace and medical technology, with a particular focus on energy generation and storage. The firm recognizes the growing energy demands driven by AI and aims to address downstream energy and infrastructure challenges.
Angus Blair, partner at Outset, emphasized the critical link between AI growth and energy availability. “We know that the biggest constraint for AI growth all comes down to who can get the most installed energy the fastest, and so that’s where we’ve ended up concentrating more of our attention,” Blair told TechCrunch.
Outset’s portfolio includes companies like OpenStar, a nuclear fusion startup developing levitated dipole reactors. OpenStar recently achieved a significant milestone by creating superheated plasma at temperatures of around 540,000 degrees Fahrenheit. This achievement, accomplished with a relatively modest $10 million investment, marks an important step toward producing fusion energy.
Another notable company is EnergyBank, which is developing long-duration energy storage solutions for floating offshore wind farms. EnergyBank’s technology aims to improve the profitability of offshore wind assets and enhance grid resiliency, particularly in regions like Europe.
Outset Ventures provides its portfolio companies with access to a 60,000 square-foot facility in Auckland, equipped with specialized lab and engineering equipment. This vertical integration strategy helps de-risk deep tech ventures in a country where early-stage capital and technical resources can be limited.
While the $25 million fund may seem modest compared to Silicon Valley standards, Blair notes that it represents a significant amount in New Zealand’s capital-efficient ecosystem. He emphasized that New Zealand’s startup funding environment leans toward capital efficiency and high technical quality.
New Zealand’s venture and early-stage investment reached a record high of $350 million in 2024, a 53% jump from 2023. Outset’s Fund II is supported by a mix of local institutional and private sources, as well as international high-net-worth individuals who have relocated to New Zealand.
Despite the challenges of distance and a smaller local investor base, Outset Ventures believes New Zealand is well-positioned to tackle global challenges through deep tech innovation. The firm aims to serve as a launchpad for companies with ambitious international goals and a strong foundation in hard science.
