King River Capital is building a $157 million sixth VC fund to back AI

UNSW chancellor David Gonski and Simon Sheikh’s impact investment fintech Future Super are among the investors in a new US$100 million fund to back artificial intelligence (AI) startups.

King River Capital said it’s nearing the final close of  its latest A$157 million fund, which continues its ongoing strategic focus on AI-driven software startups both here and in United States, where the Sydney VC also has New York and Denver offices. The Fairfax family office, Marinya Capital, and the Smorgon family have also chipped in to the new fund.

In the six years since Chris Barter, Zeb Rice and Megan Guy founded the VC in 2019, it’s raised three software funds, a digital asset fund, and separate web3-focused Inevitable Gaming Fund in partnership with  Immutable and Polygon Labs in April 2024.

King River has invested in 27 software startups, including the messaging app Discord, Paystand and Metropolis in the US, and Cover Genius and Immutable. The new fund has already backed four startups: no-code AI agent management platform Relevance AI and digital estate planning startup Safewill, and in the US, Zuma and Oxio.

King River cofounder Chris Barter said AI is evolving at breakneck speed, and it’s now a pivotal moment where innovation and responsibility must go hand-in-hand.

“We’re backing the boldest  founders who aren’t just pushing the boundaries of AI but are doing so with a deep  commitment to ethical and responsible innovation,” he said

“The talent and groundbreaking technology emerging from Australia and the US right now are extraordinary, and we’re excited to help shape the future.”

It’s the first time Future Group, which in late 2023 acquired women-focused fintech Verve Super, has made a VC investment outside of climate and renewable technology.

Future Group executive director, investments, Sharon Davis, said they believe King River takes a responsible, human-led approach to tech and AI that will benefit their members.

“We’re always looking for opportunities that will allow our members to benefit from the  innovations shaping the future – whether it’s the energy transition or technology,” she said.

“This fund  presents an attractive opportunity to benefit from the growth of AI while continuing our  commitment to invest for a future worth retiring into.”

King River Capital now has more than A$1.2 billion in assets under management.