Prospective fintech fund H2Ocean hits choppy waters
17 October 2016 | 3880 views | 0
The backers of an Australian fintech fund have scrapped plans to raise capital through an IPO after failing to drum up sufficient interest from institutional investors.
Australian fintech accelerator H2 Ventures lodged a prospectus with the country's securities regulator in August to file for an IPO as a listed venture capital company, H2Ocean, with a view to raising up to $55 million for investment in early-stage startups.
On publishing the prospectus, H2 Ventures co-founders Toby and Ben Heap were bullish about their prospects, anticipating strong interest from some of Australia's largest tech companies.
“We have very good direct retail demand, the demand was less strong through the brokers,” Ben Heap told StartupSmart. “I think that’s because it’s something new, it’s something that requires real sort of thought.”
Instead the Heap brothers intend to scale back their plans, which envisioned the creation of a diversified global portfolio of between 15 and 50 fintech ventures, and instead proceed as a private fund.