Leonardo AI, Airtasker, Canva and Linktree Founders Back Side Stage Ventures in $50M Fund II

Why It Matters

The fund’s oversubscribed raise signals deep founder confidence in Side Stage’s model and positions the firm to back the next wave of AI‑driven, category‑defining startups, boosting Australia’s early‑stage ecosystem.

Key Takeaways

• Side Stage Ventures raises $50M Fund II, $40M first close
• Founders of Leonardo AI, Canva, Airtasker, Linktree back the fund
• Fund II over double first fund, indicating strong LP confidence
• Side Stage focuses on $0.5‑$1.5M pre‑seed/seed investments globally
• MagicBrief exit 2025 placed fund in top VC decile worldwide

Pulse Analysis

Side Stage Ventures’ second fund marks a pivotal moment for Australia’s venture landscape. By securing $40 million in its first close, the firm has attracted a who’s‑who of local tech founders—Leonardo AI, Canva, Airtasker, and Linktree—who are reinvesting their exit proceeds. This founder‑led capital pool not only validates Side Stage’s hands‑on, founder‑centric approach but also expands its war chest to $50 million, more than twice the size of its inaugural fund. The firm’s track record, highlighted by the 2025 MagicBrief exit, now places it among the top‑decile VC funds globally, enhancing its credibility with limited partners and portfolio companies alike.

The surge of AI and generative technologies is reshaping startup categories, a trend Ben Grabiner describes as a "once‑in‑a‑generation reshuffle." By positioning itself as sector‑agnostic and focusing on $500,000‑$1.5 million pre‑seed and seed rounds, Side Stage can capture early‑stage opportunities before market consensus forms. Founder‑LPs bring more than capital; they contribute operational expertise, networks, and a bias toward rapid execution, which can accelerate product‑market fit for nascent ventures. This model aligns with the broader shift toward founder‑backed funds that act as both investors and mentors, fostering ecosystems where capital and experience flow together.

Looking ahead, Side Stage’s expanded fund equips it to back the next generation of Australian startups aiming for global scale. Elli Hanson’s promotion to partner underscores the firm’s commitment to leveraging design and strategic insight in deal sourcing. With a robust global network, the fund can help portfolio companies navigate cross‑border expansion, especially into North American and Asian markets. As AI, fintech, and marketplace innovations mature, Side Stage’s blend of capital, founder experience, and strategic guidance positions it to generate outsized returns while strengthening Australia’s reputation as a hotbed for world‑class tech entrepreneurship.

Deal Summary

Side Stage Ventures announced the first close of its $50 million Fund II, raising $40 million from founders of Leonardo AI, Airtasker, Canva, Linktree, Airwallex and Aconex. The fund, more than double the size of its first fund, will continue to invest $500k‑$1.5M in pre‑seed and seed rounds across sectors. The raise reflects strong support from successful Australian founders.