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This is a condensed summary of The Edition, our flagship weekday newsletter, and your afternoon debrief on the biggest stories across Capital Brief. Sign up now.
ANZ has drawn the curtain on its five-year-old venture arm, 1835i , folding its investments into a new structure as part of a broader cost-cutting push. All of 1835i’s staff have been made redundant.
Launched in 2018, 1835i invested about $500 million in startups, including Cashrewards and Airwallex . DataMesh Group , Slyp , Lendi , Weel and Valiant Finance were also in its portfolio.
The move reflects ANZ chief executive Nuno Matos ’ drive to aggressively cut costs and sharpen the bank’s focus on core priorities. But it also adds to a growing list of failed corporate venture capital plays in Australian finance.
But as Bronwen Clune reported, some initiatives stand out. Commonwealth Bank ’s x15ventures announced a strategic partnership with Triple Bubble , the fintech fund co-founded by Up Bank creator Dominic Pym , becoming its first institutional investor. “CommBank are coming out and saying, well, we’re going to invest, continue investing, not pull back like everyone else is, Pym told Capital Brief.
CBA’s decision to back an independent fund rather than run its own venture arm could prove more sustainable than the direct corporate VC model, which has faltered repeatedly. Or it may simply be another chapter in the sector’s troubled history with startup investing.
'You should be compensated': Canva's Cliff Obrecht backs creators in copyright fight
In late July, Tech Council of Australia chair Scott Farquhar called for weaker copyright laws.
Weeks earlier, Canva co-founder Cliff Obrecht — also a TCA board director — struck a different note, backing intellectual property protections. Asked by Capital Brief if Canva supported his comments, the company said innovation must be balanced with fair reward for creativity.
The TCA’s position on copyright laws has evolved since its chair delivered a divisive Press Club speech calling for the loosening of copyright laws. The industry group now concedes that an equally important factor is developing new models to reward creators.
This week, the TCA revealed it is in talks with members to chart a path that enables both AI training and fair compensation for creators.
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OpenAI becomes Tech Council member as it expands in Australia
OpenAI has joined the Tech Council of Australia as it expands its operations locally. OpenAI’s focus on Australia has increased, as the US$500 billion company announced a Sydney outpost, and last month its executives met Treasurer Jim Chalmers to discuss “strategic investments”.
The move comes amid Farquhar’s push to position Australia as a data centre hub for Southeast Asia. But TCA members remain divided on policies like copyright reform. OpenAI, meanwhile, continues to expand globally through its multibillion-dollar “Stargate” infrastructure program and policy advocacy.
Geoff Wilson accuses L1 Group of 'stealing money' due to Platinum LIC fee hike
Prominent fund manager Geoff Wilson launched a fierce attack on rival fund manager L1 Capital after losing his bid to take control of Platinum Capital® ’s board. He accused L1 Capital of “stealing money from shareholders” after it proposed a management fee hike.
“If L1 eventually does get in as manager, one day, they'll be paying a 20% performance fee on zero. And currently, they've got a credit of $315 million underperformance at 15% per annum. So the shareholders are 35% worse off,” Wilson said.
Independent director David Gray backed the alignment of incentives through performance fees, dismissing low fees without returns as “shit-ass”.
Victoria's $2b startup fund awaits its future as government review handed down
Innovation fund Breakthrough Victoria faces an uncertain future, with speculation it may make no further investments. The Allan government has confirmed it has received a long-awaited review into the fund and is now considering its findings.
Launched by the Andrews government in November 2020 with a $2 billion commitment, Breakthrough Victoria remains the largest innovation fund in the country.
How Kerry Stokes' latest — and probably last — sector-shaping media deal was done
The idea of a deal between billionaire Kerry Stokes’ Seven West Media and Southern Cross Austereo had been considered at both companies over the last couple of years. After all, Seven managing director and CEO Jeff Howard and Southern Cross CEO John Kelly go back more than 15 years.
After an asset sale by Southern Cross fell through in February, the two companies came together for a TV licence deal in May, and this triggered information discussions over the possibility of a more significant transaction. A tight inner circle, including Howard, Kelly, their respective chairmen, Heith Mackay-Cruise , and Kerry Stokes, quietly stitched together the all-scrip merger to bring together the two media companies.
Verbatim of the week
This love is pure profit.
– Taylor Swift in her new song 'Father Figure', released today, giving us the closest thing we could find to an excuse to quote her in a business and finance newsletter.
This is a condensed summary of The Edition, our flagship weekday newsletter, and your afternoon debrief on the biggest stories across Capital Brief. Sign up now.