Square Peg to invest a third of new $550 million fund in Israeli startups

Australian venture capital firm Square Peg has raised $550 million for its fifth fund. Square Peg invests mainly in early-stage startups and the new fund will be used for investments across Southeast Asia, Australia, and Israel, with around a third of the sum expected to find its way to Israeli startups.

The fund is expected to invest in around 20 companies in total, with sums varying between $1 million and $30 million in each deal.

Square Peg Capital team.

Square Peg was founded in 2012 and has over $3 billion in assets under management. It has invested in over 70 companies, including notable unicorns such as Canva, Stripe, and Fiverr.

Square Peg’s activity in Israel is headed by two of the firm’s partners, Philippe Schwartz and Yonatan Sela, both former entrepreneurs. It has invested over $250 million in local startups to date, including in Fiverr, Aidoc, Voyantis, Exodigo, Deci, Retrain, Sternum, Tomorrow.io, and additional companies currently in stealth.

“Much of the new fund we have raised will be invested here with Israel being an important center of activity for Square Peg,” said Sela. “The fact we are active in different geographies allows us to conduct in depth work in our areas of expertise.”

Thanks to its successful investments to date, Square Peg has already returned some $600 million to its investors.