Australian Superannuation Funds Entering Fintech
First State Super, one of Australia’s largest superannuation fund managers, will begin to invest in financial technology startups over the next few years.
A report from the Sydney Morning Herald underlined the fund’s desire to invest in new lucrative businesses to ensure ample growth for its clients. At the launch announcement last week, many notable politicians and industry insiders were in attendance, including Australia’s Prime Minister Malcolm Turnbull and Treasurer Scott Morrison.
H2 Ventures, a venture capitalist group specializing in financial technology, will partner with First State Super to provide insight on up-and-coming fintech startups and other established fintech companies for investment opportunities.
H2 has previously worked with other VC firms, including Blackbird Ventures, which piqued the interest of the superannuation fund. H2 has also set up its own accelerator program called Stone & Chalk to give additional support to Australia’s already thriving fintech scene.
First State Super currently manages close to $54 billion in assets and counting and has pledged at least $250 million for technology company investment over the next few years. H2 will serve First State Super by proving key access to investment opportunities in fintech companies.
“Institutional investment into Australian innovation is a really important thing – we have no doubts others will follow. First State Super decided this is a space they want to be in, and they decided to put in a big lick of money, driven by the fintech opportunity,” said H2 co-founder Ben Heap.