Sydney-based technology investor King River Capital is edging to a close for a new $100 million fund that aims to support AI-driven software startups that are disrupting traditional SaaS models.

The fund has been backed by Future Group, which is investing on behalf of Future Super and Verve Super, as well as Marinya Capital, the Fairfax family office, David Gonski and the Smorgon family.

Self-described as “highly engaged, nimble partners”, King River Capital says it is looking to support “world-class founders pushing tech boundaries across Australia and the United States” where most of the firm’s investments have been made to date.

"AI is evolving at breakneck speed, and we’re at a pivotal moment where innovation and responsibility must go hand in hand,” says Chris Barter, one of King River Capital’s co-founders and managing partners.

“At King River Capital, we’re backing the boldest founders who aren’t just pushing the boundaries of AI but are doing so with a deep commitment to ethical and responsible innovation.

“The talent and groundbreaking technology emerging from Australia and the US right now are extraordinary, and we’re excited to help shape the future with visionary entrepreneurs leading the charge."

King River Capital, which has $1.2 billion in funds under management, invests in high-growth technology businesses that are working to solve critical problems within large markets.

Among its current investments are digital freight platform Ofload, web3 gaming development platform Immutable, digital courier and shipping network Sendle and visitor management software developer Zipline.

They are part of a portfolio of 27 software companies, including unicorns such as Cover Genius and Immutable in Australia and Discord, Paystand and Metropolis in the US.

The firm is considered Australia’s leading digital assets and crypto investor after launching the King River Digital Assets Fund in February 2022 and, more recently, the Inevitable Games Fund (IGF) in partnership with Immutable and Polygon Labs in April last year.

The company says IGF has already recorded 180 per cent growth since its launch, outpacing Bitcoin’s performance over the same period.

The firm’s latest fund is King River Capital’s fifth since inception in 2019, firming its position as one of Australia’s most active venture capital investors across software, artificial intelligence and digital assets.

For Future Group, the investment in the King River Capital fund is its first outside of climate and renewable technology in a move that is said to be strategically timed to diversify into artificial intelligence and broader technology outside renewables.

Future Group, which has $16 billion in funds under management and advice, has been encouraged by King River’s solid track record in “responsible AI investment and its ability to identify transformative AI opportunities”.

“We’re always looking for opportunities that will allow our members to benefit from the innovations shaping the future - whether it’s the energy transition or technology,” says Future Group’s executive director of investments Sharon Davis.

“This fund presents an attractive opportunity to benefit from the growth of AI while continuing our commitment to invest for a future worth retiring into.

“King River takes a responsible, human-led approach to tech and AI and we believe this will ultimately benefit our members.”

King River Capital has revealed that its new fund has already made four investments, comprising Relevance AI, a no-code AI agent management platform; Safewill, Australia’s largest digital estate planning platform; Zuma, a US-based AI-powered operating system for property managers; and Oxio, a disruptive US telecom-as-a-service company.

King River Capital says its investment strategy revolves around making a small number of concentrated investments, “ensuring a high-conviction, hands-on strategy” that provides direct senior-level support for portfolio companies from its teams located in Sydney and New York.

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