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 NZD paid over three years

$3,835,000
Funded Wholesale
Ended 2021-10-08 22:00:00
$3,835,000 Funded Wholesale
Offer closed 10:00 pm, 8 Oct 2021

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)

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.