Pacific Partners is revolutionizing the AI landscape by focusing on early-stage startups, particularly in Australia. This strategic initiative was unveiled during Abu Dhabi Finance Week, where the firm expressed its dedication to fostering AI-driven innovation.

Managing Partner Clayton Larcombe emphasized the pivotal role of Australia in the global AI ecosystem. “Australia is rapidly becoming a powerhouse of global innovation. We are eager to back entrepreneurs who are pioneering AI advancements here,” he commented.

The investment framework set by Pacific Partners allocates 60% of funds for initial investments and reserves 40% for follow-up funding to assist startups during their expansion phases. They aim to keep an active portfolio of 20-30 companies.

Stephen King, the Head of Investment and a former Morgan Stanley executive, shared insights into the fund’s targeted investment strategy. “Our approach is to focus on a select group of startups, capitalizing on our deep industry knowledge to establish true partnerships,” King remarked.

Focusing on sectors where AI intersects with health and wellness, media and gaming, defense, and enterprise solutions, Pacific Partners is carving out a niche in early-stage funding—pre-seed, seed, and Series A rounds. This strategy allows them to avoid the competitive landscape of larger VCs and positions them for higher returns at lower risks. King noted, “Smaller, more agile funds like ours that engage early in a startup’s life are now seen as attractive by savvy institutional investors.”

Edward Saatchi, a venture partner and two-time Emmy award winner whose former company was acquired by Meta, lends his visionary outlook to the fund. Saatchi’s influential TED talk, “Will Intelligent Life Emerge from a Simulation?” guides the fund’s AI-centric investment philosophy.

With operations based in Sydney and San Francisco and potential expansion plans for the UAE, Pacific Partners strategically places itself in vital tech hubs. The fund plans to direct a quarter of its investments to Australian startups, with the remainder split between Silicon Valley and the Middle East.

The firm’s strategic early investment in Perplexity, now a $9 billion AI company, underscores their capability to spot and capitalize on opportunities well before larger funds enter the scene.

By focusing on early-stage startups, Pacific Partners addresses the funding gaps these companies often face, providing a pathway for growth and development that might otherwise be inaccessible due to the large financial commitments required by bigger investment funds.