Beaten Zone Venture Partners (BZV) has reached $17 million in committed capital in March powered by a surge of investor interest in the sovereign defence capability the fund is building.
The fund, launched by Lead Investor and Founding Partner of Beaten Zone Venture Partners, Steve Baxter, in August 2023, has reported a sharp acceleration in capital inflows, with March 2026 alone accounting for $2.6 million (or almost 16 per cent) of total capital raised.
“The sharp focus on Australia’s defence posture has prompted a growing investor recognition that high-value sovereign companies whose technologies will matter to our future security have been irrationally unloved by the market," Baxter said.
“Defence was once seen as too hard or too slow for venture capital, and in recent years ESG mandates made defence a dirty word in investor circles. But more investors are recognising that our fund will not only generate great returns, but it will also help build key capabilities that our country will need in the coming decade to protect our way of life."
BZV has now raised $11.95 million from external investors plus $5.05 million invested directly by Baxter, who said demand for the firm’s defence and national security technology investments had increased dramatically in recent weeks amid stark reminders of the growing geopolitical threats facing Australia.
“When you consider the geopolitical events of the past 12 months, the thesis has never been clearer. As an investor in Beaten Zone Ventures, I'm confident we're backing the right horse, in the right area, at the right time. It's hard to overstate the value of their early conviction in this space. Meeting the portfolio companies and seeing their progress firsthand has been nothing short of inspiring," Co-founder of Black Sky Industries, Vu Tran, commented.
Beaten Zone is actively deploying capital into Australian start-ups developing capabilities aligned with national security priorities, including autonomous systems, cyber resilience, and advanced hardware.
The firm raised $10 million in its first 18 months, a further $4.4 million over the following 12 months and $2.6 million in March 2026.