CSIRO quadruples deep tech bet to $14M for Main Sequence's Atmosphere fund

What's the deal? CSIRODealroom has a profile for this one. Try Dealroom → is quadrupling its backing for Main SequenceDealroom has a profile for this one. Try Dealroom →'s AtmosphereDealroom has a profile for this one. Try Dealroom → pre-seed fund to US$12.9M, up from the US$3.24M it allocated in the firm's third fund. The money will sit inside Main Sequence's fourth fund, which it plans to raise later this year.

Why now? The increase comes two years after Atmosphere launched as an experiment to turn Australian science into venture-backed companies. In that time, it has backed 11 companies, three of which have already progressed into Main Sequence's larger venture funds.

What's the endgame? Atmosphere invests around US$323.5K at a point when there may be little more than promising research, a scientist who wants to build a company, and a rough sense of a market. Main Sequence then works alongside founders to turn that into something other investors can back.

Head of Atmosphere Grace Bird calls the model "venture buildability" — helping scientists who understand their technology develop the commercial machinery around it. "The specialness is that you get the Main Sequence team," she said. "We will unleash as much as we can into the company … we will run alongside you for whatever you need."

The signal: The deliberately early, pre-seed structure sits before traditional venture capital, betting that hands-on support can convert raw research into fundable startups. CSIRODealroom has a profile for this one. Try Dealroom →'s decision to quadruple its commitment suggests the first two years produced enough to justify a bigger wager.

Read more: capitalbrief.com

Image credit: U.S. Army Combat Capabilities Development Command