Advance VC unlocks liquidity for Australian venture capital

With experience spanning corporate advisory, startups and venture capital, Max Kausman has witnessed the evolution of Australian venture first-hand.

Now he’s anticipating the next phase of demand, and building a new fund to support it.

Advance VC is Australia’s first dedicated fund of funds with a focus on secondaries. It buys interests in existing venture capital funds that are already deployed into a portfolio of companies.

The sellers are typically existing investors in those funds, looking to exit and realise their returns to date.

That creates a dual benefit: a pathway for investors to exit and recycle capital, and a new way for investors to access the VC asset class, with retrospective access to funds that are closed to new investors with portfolios already showing visible progress.

“I invest with hindsight,” Kausman says. “I can assess what’s already in a portfolio, see how it’s tracking, and decide whether I want to buy into those assets today.”

Advance VC brings a new type of investor into venture — one seeking a different return, risk, and liquidity profile. At the same time, it allows existing VC investors to release capital and reinvest into the next wave of companies.

“Liquidity is incredibly meaningful to the market,” Kausman says. “We need avenues for people to get their money out, to support them to keep putting money in.”

But, according to Kausman, few buyers are equipped to transact here, given the complexity of assessing diversified portfolios.

Coming home to Melbourne

Advance VC has secured $300,000 in grant funding from LaunchVic through the VC Support Program, designed to attract new investment firms to Victoria.

“This support was critical to unlocking the opportunity,” Kausman says. “Building an investment firm is an expensive undertaking.”

It also represents a personal homecoming. Originally from Melbourne, Kausman relocated to Sydney to work in VC. Now, he’s bringing that experience back.

Historically, startups and institutional investors have been split between Melbourne and Sydney, but most venture capital firms have been based in NSW.

“That’s changing fast”, Kausman explains. “More and more funds are emerging in Victoria, and LaunchVic’s support is a meaningful step in levelling the playing field.”

Signs of a maturing market

Within months of launch, Max has assembled a seasoned advisory group and secured support from a strong base of investors, including high-net-worth individuals, family offices and wealth advisory firms.

The fund has already made several investments, creating exposure across more than 10 Australian venture funds to over 200 underlying portfolio companies, spanning unicorns such as Canva and Airwallex, alongside high-growth scale-ups and early-stage bets.

This traction reflects the growing maturity of the Australian ecosystem. “There is now no doubt Australia can build world class technology businesses”, Kausman says.

At the same time, the number and diversity of Australian funds has expanded — across sectors, stages and strategies. “That’s overwhelmingly positive,” he says. “It means more capital for founders and more avenues for investors.

Looking ahead, Kausman sees Advance VC continuing to grow and evolve alongside the market, supporting investors and fund managers with liquidity and developing new ways to access the asset class.

“As an investor across different fund managers and vintages, I want to see the whole asset class grow and succeed,” he says. “Advance VC is positioned to help support this next wave of growth.”