Beaten Zone Venture Capital Fund 1 Achieves Unconditional ESVCLP Registration
Brisbane-based defence technology venture capital fund secures government registration, unlocking significant tax benefits for investors
BRISBANE, Australia 16 July 2025 – Beaten Zone Venture Capital Fund 1, LP today announced it has received unconditional registration as an Early Stage Venture Capital Limited Partnership (ESVCLP) from the Australian Government’s Department of Industry, Science and Resources.
The ESVCLP registration represents a significant milestone for our Brisbane-headquartered fund, which focuses on early-stage defence technology investments. This government endorsement provides Limited Partners with access to substantial tax benefits, including a 10% capital gains tax offset on contributions and capital gains tax-free treatment on eligible investments.
“This is great news and well done to our team,” said Steve Baxter Founder of Beaten Zone Venture Partners. “We have received from the federal government a notice that our fund is now unconditionally registered as an Early-Stage Venture Capital Limited Partnership.”
The registration process, which began with conditional approval in August 2023, concluded on 27 June 2025 when the Innovation Investment Committee Chair formally approved the fund’s final documentation. The Department of Industry, Science and Resources confirmed that Beaten Zone Venture Capital Fund 1, LP meets all requirements under the Venture Capital Act 2002.
With ESVCLP status secured, Beaten Zone Venture Capital Fund 1 is well-positioned to capitalise on significant opportunities in the Defence technology sector. The fund currently has four investments and is pursuing up to five additional investments before the end of 2025 from a robust pipeline of 691 opportunities.
“I often think what the founders of Blackbird Ventures must have thought when first launching, when they surveyed the market and saw the likes of Canva, Safety Culture, Culture Amp and wondered why these great teams were not finding equity capital, that is where we stand now in defence,” Steve noted. “Great teams, great deals, eager markets with massive tail winds.”
The fund’s rigorous investment process demonstrates strong market traction, having evaluated 691 opportunities to date while maintaining disciplined selection criteria. Currently, seven opportunities are progressing through due diligence, with the majority of deal flow sourced through the teams’ proprietary networks. The fund has strategically expanded its origination activities into the US market, adding 305 new opportunities in the most recent quarter alone representing a huge growth in opportunity count.
The Defence technology sector has experienced unprecedented growth, driven by increasing global security concerns and government investment in sovereign capabilities. Beaten Zone Venture Partners has positioned itself at the forefront of this emerging asset class, with particular strength in four key sub-domains: Autonomous Systems, Advanced Materials & Manufacturing, Advanced Computing & Software and emerging technologies across the broader Defence spectrum.
The ESVCLP registration provides investors with:
- 10% capital gains tax offset on fund contributions
- Capital gains tax-free treatment on eligible investments
- Access to a curated portfolio of defence technology companies
- Professional fund management with sector expertise
Beaten Zone Venture Partners specialises in early-stage defence technology investments. The firm has developed a systematic approach to identifying and supporting innovative companies developing cutting-edge solutions for defence and security applications.
With A$4.45 million already deployed across four portfolio companies and a robust pipeline of 691 opportunities valued at over A$451 million, Beaten Zone Venture Partners has established itself as a leading investor in the Australian Defence technology ecosystem. The fund’s disciplined investment process, with 88.4% of deal flow sourced through proprietary networks, ensures access to high-quality opportunities across key technology domains including autonomous systems, advanced manufacturing, and software solutions.
ABOUT BEATEN ZONE VENTURE PARTNERS
Beaten Zone is headquartered in Brisbane and will invest in sovereign early-stage businesses with products having material military use, that help to contribute to Australian and allied war-fighters lethality and survivability. The scope precludes investments involved with controversial weapons, e.g., landmines, or other capabilities that would violate Australian ratified treaties or agreements.
MEDIA CONTACT
Stephen Baxter Lead Investor and Founding Partner (steve@beatenzone.vc)
Peta Ellis General Manager (peta@beatenzone.vc)
ABOUT STEVE BAXTER (www.stevebaxter.com.au)
Steve is a passionate Australian, Queenslander and veteran. He has been investing into the Australian technology scene since 2011 with over 90 companies funded. He was the founder of South Australian dial up ISP SE Net, and co-founder of Brisbane based whole telecommunication company PIPE Networks. Following successful exits, Steve started River City Labs, Startup Catalyst, River Pitch and TEN13 as well spending one year as Queensland Chief Entrepreneur and four seasons on the Channel Ten show Shark Tank.
Disclaimer
Beaten Zone Investment Manager Pty Ltd. (CAR) is a corporate authorised representative of Boutique Capital Pty Ltd (BCPL) AFSL 508011, CAR Number 001303229. CAR is the investment manager of Beaten Zone Venture Capital Fund 1. LP (Fund).
To the extent to which this document contains advice it is general advice only and has been prepared by the CAR for individuals identified as wholesale investors for the purposes of providing a financial product or financial service, under Section 761G or Section 761GA of the Corporations Act 2001 (Cth).
The information herein is presented in summary form and is therefore subject to qualification and further explanation. The information in this document is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account personal investment objectives, financial circumstances or particular needs. Recipients of this document are advised to consult their own professional advisers about legal, tax, financial or other matters relevant to the suitability of this information.
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