On October 1, 2025, Australia & New Zealand Banking Group (ANZ) confirmed that it would be closing down its corporate venture capital division, 1835i, after five years of experimenting with startup investment.
The decision saw the entire 1835i team become redundant and its remaining portfolio rolled over into ANZ’s other investment vehicles.
Capital Brief
This move represents a dramatic change in ANZ’s innovation, investment, and risk-taking strategy. Below, we consider how 1835i developed, why it was closed, and what it means for corporate venture capital (CVC) in financial services.
A brief history of 1835i
1835i was founded in 2019 as ANZ Ventures. It was later rebranded to 1835i (a reference to the year ANZ was founded) and was an external investment management business aligned with the bank’s innovation strategy.
Its mandate was two-fold: to provide financial returns through investment in high-growth startups, and to catalyze innovation within ANZ by building early-stage fintech and adjacent tech. During its lifetime, it invested around USD 500 million into startups, including high-profile wagers such as Cashrewards and Airwallex.
For example, 1835i had previously owned a ~1 % holding in Airwallex, investing in the payments startup across several rounds.
It also bought Cashrewards, an Australian cashback and affiliate marketing platform, with a view to adding digital commerce capability into ANZ’s offerings.
However, over time, there were a number of challenges that arose: underperformance in certain investments, changing strategic priorities at ANZ, regulatory pressures, and new cost discipline following leadership changes.
Why close it out?
A number of factors seem to have converged to reach this decision:
Underwhelming performance
Some 1835i portfolio companies did not perform as expected. Specifically, Cashrewards did not return and was formally closed in September 2025 as part of ANZ’s broader restructuring.
The venture arm was left with marking down significant losses.
Change in strategy and leadership
With CEO Nuno Matos at the helm, ANZ started a far-reaching corporate rebirth. The bank will shed approximately 3,500 employees in 12 months to get back to core banking activities and enhance cost
Meanwhile, ANZ has transitioned to a non-operating holding company model for its investment activities — without an external VC arm but with greater flexibility internally.
As per ANZ, such investments under 1835i will be transferred to this non-bank holdings division, enhancing governance and supervision.
Risk exposure and regulatory environment
Banks are in regulated businesses and subject to scrutiny on capital, compliance, and risk. Active VC business adds complication and reputational risk. Against the background of macroeconomic volatility and intensifying regulation, ANZ might have chosen to step back from the more risky fringes of venture investing.
Capital redeployment and liquidity requirements
Interestingly, ANZ just sold its interest in Airwallex for ~USD 67 million, maybe to release capital for core banking purposes.
In a cost pressure and banking headwind climate, speculative losses or money-losing bets become cheaper to shed.
Immediate impact and transition
Redundancies and staff effect
All of the people who worked at 1835i (approximately 14) have been made redundant, sources say.
Portfolio transfer
The current startup investments will not be suddenly wound up. Rather, they will be moved into ANZ’s non-bank holdings or comparable internal entities.
Startup Daily
+1
Winding up trusts and external arrangements
The 1835i trusts and arrangements with the external management company will come to an end when the bank terminates its external VC arrangement.
Losses realized
Write-downs on performing assets and investments — most notably the losses in relation to Cashrewards — will be needed when the bank closes.
Wider implications
The 1835i shutdown could have lessons for corporate venture capital and fintech ecosystems in Australia and beyond:
CVCs are at risk to parent company priorities
An innovation arm’s existence frequently hinges on the strategic zeitgeist at the parent. Even good bets may be cut under financial or leadership duress.
Capital vs strategic motive tension
Most CVCs juggle twin mandates — financial returns and strategic fit. When returns are poor, strategic rationale has to be robust to continue operating.
Signal to founders & investors
Bank-led VC units-backed startups can experience increased execution risk when macro or banking cycles turn. The validity of CVC arms hinges on long-term commitment.
Reorientation toward internal innovation
ANZ’s shift towards internal frameworks indicates larger banks might prefer to build capabilities in-house over external bets.
Conclusion
ANZ’s closing of 1835i is more than a cost reduction — it is a re-tuning of the way the bank approaches innovation and risk. Although the action will frustrate some in the fintech and startup worlds, it highlights a harsh truth: corporate venture arms need to defend themselves on a basis of innovation, discipline, returns, and overlap with evolving strategic imperatives. Whether or not this closure signals a wider retreat in CVC by financial institutions remains to be seen.
