Outset Ventures Raises $25M to Fuel New Zealand’s Deep Tech Revolution
New Zealand’s deep tech sector just received a major $25 million boost, signaling growing confidence in the country’s ability to solve global challenges through scientific innovation.
A Powerhouse for Hard Science Startups
Auckland-based Outset Ventures, the venture firm behind unicorns like Rocket Lab and LanzaTech, has successfully closed its second fund at NZ\(41.5 million (approximately \)25M USD). The oversubscribed fund demonstrates strong investor appetite for New Zealand’s unique approach to deep tech development.
Focus Areas Driving Innovation
Outset’s investment strategy targets startups working on:
- Advanced energy generation and storage solutions
- Cutting-edge aerospace technologies
- Breakthrough medical innovations
- Infrastructure optimization for AI demands
“The biggest constraint for AI growth comes down to energy capacity,” explains Angus Blair, Partner at Outset Ventures. “That’s why we’re concentrating on technologies that can deliver cheaper, cleaner energy at scale.”
Portfolio Highlights: From Fusion to Energy Storage
OpenStar: Revolutionizing Nuclear Fusion
OpenStar Technologies represents one of Outset’s most ambitious bets. The nuclear fusion startup achieved a major milestone in November 2024 by creating superheated plasma at 540,000°F—a critical step toward viable fusion energy. Remarkably, OpenStar reached this breakthrough with just $10 million in funding, showcasing New Zealand’s capital-efficient approach to deep tech.
EnergyBank: Solving Renewable Energy Storage
EnergyBank is developing innovative long-duration storage solutions for floating offshore wind farms. Their technology could increase profitability of renewable energy assets by up to 50% while addressing grid resiliency challenges, particularly in energy-strained regions like Europe.
Why New Zealand Excels in Deep Tech
Unique Advantages
- Capital Efficiency: NZ startups achieve more with less funding
- Technical Talent: World-class engineering and scientific expertise
- Supportive Infrastructure: Outset’s 60,000 sq ft Auckland facility provides rare lab access
- Global Perspective: Local solutions designed for international impact
Funding Landscape
While 2023 saw a venture capital downturn in New Zealand, 2024 rebounded strongly with:
- $350M total venture investment (53% YoY growth)
- Record-breaking early-stage funding
- Increased interest from global investors like Bessemer and Founders Fund
The Road Ahead for Kiwi Innovation
Outset’s Fund II represents more than capital—it’s a vote of confidence in New Zealand’s ability to:
- Commercialize scientific breakthroughs
- Attract top technical talent
- Solve pressing global energy challenges
“Deep tech is where New Zealand has historically punched above its weight,” notes Blair. “Our founders aren’t afraid to take big technical swings at world-changing problems.”
With its unique combination of scientific rigor, capital efficiency, and global ambition, New Zealand’s deep tech ecosystem appears poised for its next wave of breakthrough innovations.
