Icehouse Ventures: IVX Fund I

Icehouse Ventures is New Zealand’s most active early-stage investment firm since 2015. Snowball Effect has partnered with Icehouse Ventures as they complete their final close for their expansion fund - IVX - giving Kiwi investors a simple way to gain access and exposure to a portfolio of NZ’s leading technology startups.

Minimum investment: $50,000.00 NZD paid over three years

$780,000
Offer live Wholesale
10 days Time left
(unless fully subscribed prior)
$780,000 Offer live Wholesale
10 days Time left
(unless fully subscribed prior)

Further detailed information is contained in the Information Memorandum (IM)

Download IM

Register for the Icehouse Ventures: IVX Fund I Webinar with members of the Icehouse Ventures team.

It will be held on Wednesday the 22nd September at 12.30pm, and will consist of a brief presentation by the Icehouse Ventures team, followed by a live investor Q&A session.
Webinar Registration

Icehouse Ventures: IVX Fund I

With our portfolio of over 250 New Zealand startups and $270m assets under management, Icehouse Ventures is New Zealand’s most active early-stage investment firm.

The “best kept secret” in venture capital is that big companies emerge from small companies. As New Zealand’s most active early-stage investor since 2015, we are uniquely positioned to access and invest in today’s most promising emerging tech companies. 

3.18 years is the average time between a first round and series A.

3.18 years ago...

  • We completed our 136th investment into Joyous. We were the only fund in New Zealand to secure access.
  • We invested $20.93m into 59 startups that year, making us New Zealand's most active investor.
  • We launched and closed five seed funds including First Cut (targeting founders under 30), Eden (Chinese market focus), and Icehouse 100 (an index fund).
  • We launched Flux Fund II, which went on to be the first investor in Rocos, Jasper, First AML and Narrative.
  • Our 7th Annual Showcase doubled in size to host >700 investors and 14 startups.

Over the last 3.18 years...

  • We completed our 136th investment into Joyous. We were the only fund in New Zealand to secure access.
  • We grew our portfolio from 136 to 250 startups and invested a further $48.9m.We raised $58.5m for our funds including Tuhua II ($26m), Eden III ($10m), and Icehouse 100 II ($13m). We have $35m fresh capital ready to invest in seed stage companies.
  • We've participated in the dozens of Series A rounds our portfolio have raised, including AskNicely, Avertana, Biolumic, Crimson, Dexibit, Fuel50, Halter, Mint, Parrot Analytics, Shuttlerock, Sunfed, Mentemia, Spalk, and Sharesies.
  • We capitalised Icehouse Ventures with $5m in equity investment from Simplicity, Jarden and Sir Stephen Tindall. The objective: deploy VC-level resource to seed investing to position us to attract, invest in, and add value to more of New Zealand's leading startups.

Snowball Effect has partnered with Icehouse Ventures as they complete their final close for their expansion fund - IVX - giving Kiwi investors a simple way to gain access and exposure to a portfolio of NZ’s leading technology startups.

Introduction to IVX

Icehouse Ventures has recently launched IVX, a growth stage venture fund. A $50m first close has been completed, backed by a $20m cornerstone investment from Simplicity.

IVX will leverage our unique information, relationships, and pre-emptive rights that we have accumulated as a result of investing in 250 startups to date.

IVX will invest in 30 “late-stage” companies (Series A-D stage) that exhibit the following features: established and growing teams, well-developed products & services, evidence of competitive wins, five or more years in market, revenue & proven business models, robust governance, and importantly, the potential for significant global growth. This fund will be industry agnostic.

Fund Summary

Management Fee

1% p/a on committed capital

Carried Interest

20% over an 8% annually compounding hurdle

Investment period

5 years

Fund term

10 years

Investment targets

30 or more Series A-D stage NZ companies

Our pipeline cannot be reverse engineered

We have funded over 250 companies since 2003 (150 in the last five years). We own 5% of 74 companies.

The result:

Pre-emptive rights provide access in competitive and oversubscribed rounds. We were among the only NZ investors to access First AML’s pre-Series A, Halter’s Series A, Joyous’ Series A, and Sunfed’s Series A.

Relationships with founders that span years, not months. These relationships often include residency in our co-working space, attendance at our invite-only gatherings and support of multiple capital raises.

Proprietary information. We can evaluate Series A capital raises in the context of years of reports, not just a pitch deck and DD room. In some instances we also have unique visibility by way of positions on Boards and access to financial accounts.

We have systematically grown our access

We have grown our access by launching a number of “NZ firsts” including:

  • ArcAngels Fund - investing in female leadership
  • First Cut - investing in founders under 30
  • Icehouse 100 - a passive index-style fund that has invested in 100 startups since 2017
  • Flux - a hands-on startup accelerator that invests in pre-seed stage digital startups
  • Eden Ventures - $17m from NZ-based Chinese high net worth investors
  • Outset Ventures - $12m deep tech fund

Ice Angels has grown to over 200 investors, with $10m+ invested per year via our nominee.

Our “nominee as a service” to both active angels and companies has been well adopted.

Our Annual Showcase has scaled to 1,000 investors.

1 year of seed investing = 3 years of access

We continue to make 25+ new investments per year

Our seed funds currently have ~$35m to deploy

Why does this matter?

Our existing funds are not oriented towards follow on investment. IVX picks up where they leave off, and importantly it better positions our seed funds to attract the best companies.

IVX's initial investments

How does IVX invest

30% allocated to Series A

  • 30% of the fund allocated to ~30 Series-A stage companies over three to four years
  • The first round investments by IVX will represent a relatively small exposure for the fund (~1% of fund capital each)

70% concentrated into top performers

  • 70% of the fund will be allocated into Series B-D rounds
  • Up to 20% of the fund can be invested in a single company

Investment via Snowball Effect

Investing in IVX Fund I provides a simple way for wholesale investors to get exposure to NZ VC opportunities. All investments will be held within Snowball Nominees, and will be available to view on Orchestra. Because the fund is a Limited Partnership, only wholesale investors are able to invest.


Team

Photo of Damon Crowe - IVX Limited Partner Advisory Committee

Damon Crowe - IVX Limited Partner Advisory Committee

Investment Manger - K1W1
Photo of Hamish Blackman -  IVX Limited Partner Advisory Committee

Hamish Blackman - IVX Limited Partner Advisory Committee

NZ Super (advising in a personal capacity)
Photo of Matthew Houtman - IVX Limited Partner Advisory Committee

Matthew Houtman - IVX Limited Partner Advisory Committee

Simplicity (formerly Pioneer Capital)

Supporting documents

Summary of Limited Partnership Terms

Name: IVX (I) LP. (the "Fund")

Target Portfolio Size: 30 or more investments in Series A-D NZ companies.

Minimum Capital Commitment: NZD 50K, to be drawn down at 25% per annum over 4 payments (via Snowball Nominees).

Percentage of Investment Commitment Due Date
25%
Upon 10 Business Days’ notice from acceptance of an Application to Invest
25%
Upon 10 Business Days’ notice expiring no earlier than Friday 4th of February 2022
25%
Upon 10 Business Days’ notice expiring no earlier than Friday 3rd of February 2023
25%
Upon 10 Business Days’ notice expiring no earlier than Friday 2nd of February 2024

Fund Term: 10 years.

Fees and Expenses: 1% annual management fee on committed capital.

Return of Distributable Proceeds: Each investor shall be entitled to a 1x return of contributed capital to the Fund before Icehouse Ventures receives its carried interest of 20%, over an 8% annually compounding hurdle.

Reports: Via Snowball Nominees (a limited partner), each investor will receive annual audited financial statements and quarterly unaudited summary financial information of the Fund, subject to the confidentiality provisions set forth in the limited partnership agreement.

Investing through Snowball Effect

All investors (Beneficial Holders) who invest in IVX Fund I will have their interests held by Snowball Nominees (Nominee). The Nominee will subscribe for interests in the Limited Partnership on behalf of the beneficial holders. This simplifies the compliance and investment process for investors. Snowball Nominees will use the Orchestra registry service, providing shareholders with an online record of their investment in the Fund, along with access to Fund communications and documentation. 

Nominee Interest Holding

In broad terms, the Nominee must:

  • Act in accordance with the relevant beneficial holders’s instructions (e.g., in exercising the voting rights attached to the relevant Investor interests)
  • Account to the relevant beneficial holder for all proceeds from the relevant Investor interests (e.g., dividends & distributions received)
  • Deliver notices, letters, reports, demands, offers, agreements and other documents and communications received by the Nominee to the relevant beneficial holder.
  • Under the Nominee Deed Poll, each beneficial holder indemnifies the Nominee against any losses, damages, costs, actions, proceedings, claims and demands that may be made against or incurred by the Nominee as a result of it holding the Investor Shares under the Nominee Deed Poll (unless the Nominee has been fraudulent or grossly negligent).

A Summary of General Nominee Terms

  • The investor (Beneficial Holder) acknowledges that the Nominee has not made any, and the Nominee confirms that it makes no warranty, representation, undertaking, promise or assurance in respect of the performance of the Fund.
  • The Beneficial Holder will be required to acknowledge and agree that:
    • They have had the opportunity to review or seek advice regarding the governing documents
    • Is not relying upon the Nominee or the Nominee's advisers in relation to any matter arising out of or in connection with their interest in the Limited Partnership
    • Restrictions apply to the transfer of beneficial interests, with the cost of any transfer payable immediately to the Nominee
    • The Nominee may require the beneficial holder to supply ongoing AML/KYC information
    • The Beneficial Holder indemnifies the Nominee from and against any and all losses, damages, costs, actions, proceedings, claims and demands which may be claimed, made against or incurred by the Nominee as a result of: (a) Partnership Interest; (b) breach; (c) failure to make payment. 

We encourage all investors to familiarise themselves with the full set of terms and conditions of this offer, along with their obligations as per the Nominee Deed poll.

Disclaimer: This is a private investment opportunity, where participation will be limited to investors who are “wholesale investors" as defined by the Financial Markets Conduct Act, 2013. Participation in the fund is at the sole discretion of the management of Icehouse Ventures. This offer page has been prepared for distribution in New Zealand to selected prospective investors who are not members of the "public", as that term is defined in the Financial Markets Conduct Act, 2013. In order to invest in this offer you acknowledge and represent that you are a “wholesale investor” as defined by the 2013 Financial Markets Conduct Act.

This offer page has been compiled solely for information purposes to assist prospective investors to make their own evaluation of IVX, and any subsequent decision to invest in the Fund. The information contained in this offer page is not comprehensive and is selective. This offer page does not contain all of the information that a prospective investor may require to evaluate a decision to invest in IVX and the risks associated with that investment. In making a decision to invest, prospective investors must rely on their own examination of the information contained in this document as well as such other information as they may consider relevant.

Nothing in this offer page constitutes legal, tax or financial advice. Prospective investors should seek their own professional advice on the consequences of investing in the Fund. No representation is made that any further information will be given, other than as required by law. This document may contain projections, forecasts or other statements or estimates regarding the future prospects or performance of the Fund. Any forward-looking statements are provided for informational purposes and reflect certain assumptions. Actual results may vary. No assurance or representation is made by any person that any projection, forecast or target will be achieved. Accordingly any reliance placed by any prospective investor upon them is a matter for its own commercial judgment.

International investors

The distribution of this offer outside of New Zealand may be restricted by law. This is not intended to, and does not, constitute an offer of securities in any place which, or to any person to whom, the making of such offer would not be lawful under the laws of any jurisdiction outside New Zealand. This includes, but is not in any way limited to, Australia and the United States. It is the responsibility of any Snowball Investor to ensure compliance with all laws of any country outside New Zealand relevant to their subscription, and any such Snowball Investor should consult their professional advisers as to whether any governmental or other consents are required, or other formalities need to be observed to enable them to apply for securities pursuant to each offer. The failure to comply with any applicable restrictions may constitute a violation of securities law in those jurisdictions. The securities in each offer have not been and will not be registered under the US Securities Act or the securities laws of any state of the United States.

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Warning statement

It's crucial for you to understand the characteristics and risks of this investment opportunity. New Zealand law normally requires people who offer financial products to provide in-depth information to investors before they invest. The usual rules do not apply to offers by companies through Snowball Effect. As a result, you may not be given all the information you need to make an informed decision. Investing is risky. Some of the key risks include loss of capital, illiquidity, lack of returns, dilution, loss of key people and customers, and lack of control. You should only invest money that you can afford to lose.