Software billionaire Mike Cannon-Brookes is leading a high-powered push including several Australian technology industry stars to back a new superannuation product with a technology focus aimed at millennials.
The new super product, called Spaceship, will have a technology focus in its investment mandate, with companies including Apple, Google, Facebook, Amazon and Microsoft at the core of the portfolio.
![Spaceship founders Paul Bennetts, Andrew Sellen, Dave Kuhn and Kaushik Sen.](http://web.archive.org./web/20170815150521im_/https://www.fairfaxstatic.com.au/content/dam/images/g/r/e/x/t/7/image.related.articleLeadwide.620x349.grfay9.png/1496323783420.jpg)
Spaceship co-founder and chief executive Andrew Sellen, who most recently headed marketing for Australian Ethical Investment, said it was a high-growth option aimed at the 18-35 year-old market with long-term investment goals.
"Rather than invest in the companies of the past, we want to invest in where the world is going, so the core of our portfolio is technology," Mr Sellen said.
"Most Australian super funds have too much concentrated on Australian shares, particularly the big four banks and BHP."
Spaceship would also offer a technology focus in the customer experience, with interaction channelled through a smartphone app and members able to look at their holdings in great detail.
Heavy-hitters from the Australian technology company have backed a $1.6 million investment round to form Spaceship, led by Mr Cannon-Brookes, BRW Rich Lister and co-founder of Australian-headquartered, Nasdaq-listed Atlassian.
Other investors include Simon Clausen, an early investor in US software giant Salesforce and ASX-listed online marketplace Freelancer, and Leigh Jasper, founder and chief executive of ASX-listed Aconex.
![Interaction with the Spaceship superannuation product will be via a smartphone app.](http://web.archive.org./web/20170815150521im_/https://www.fairfaxstatic.com.au/content/dam/images/g/r/f/j/3/8/image.related.articleLeadNarrow.300x0.grfay9.png/1489309473904.jpg)
Mike Baukes and Alan Sharp-Paul of software company UpGuard and Andre Eikmeier of wine online retailer Vinomofo are also on board.
Mr Cannon-Brookes, who at 36 is close to the target demographic, said young people are disengaged from their super and Spaceship could help change that. He plans to move some of his super over when the product launches and will access it on his iPhone.
"The number of [young] people who take the default employer fund is kind of scary given they've got 30-40 years of compounding ahead," Mr Cannon-Brookes said. "Super is a big, big industry that I hadn't put a lot of thought to, so I'm excited to be getting involved."
He was attracted to invest because of the strength of Spaceship's team. The other three co-founders besides Sellen are chief investment officer Paul Bennetts, whose background includes venture capital firm Airtree Ventures and investment bank Goldman Sachs; chief operating officer Kaushik Sen, who has worked in technology roles at financial services companies including working on the launch of ANZ's SmartChoice Super product; and chief technology officer Dave Kuhn who founded start-ups such as Chorus.
Mr Bennetts said Spaceship plans to back private technology companies as well as listed ones once it has enough funds under managements. This would include direct stakes in companies such as Uber and Snapchat, as well as early-stage start-ups through venture capital funds, replacing the private equity focus of most super funds.
Overall it would be a well-diversified high-growth fund and also include Australian shares, market indices, cash and fixed interest.
Mr Bennetts said the marketing plan was to start with the technology start-up scene and then broaden its reach to others in the millennial age group.
"We want to be the default fund for the startup eco-system, and it will help that we've got 40 tech influencers Mike Cannon-Brookes and Leigh Jasper signed in from day one," Mr Bennetts said.
"The reason we think it will cross over to the millennial market is that we use these products every day – for better or worse we're on Snapchat every hour, we stay with Airbnb, we get it, and we think it's not a big leap to say we should invest in them."
Spaceship is a product rather than a fund and is licensed through Trustee Partners. Alex Dunnin, the executive director for research and compliance at financial services information firm Rainmaker Group, said it was a classic example of how the superannuation industry is being disrupted by niche products that are able to enter the market without the high barrier to entry of starting a new fund.
Mr Dunnin said the regulation had always allowed this structure, but it had taken off since the introduction of MySuper in 2013. Other examples include Good Super, Cruelty Free Super, My Future Super and Virgin Super.
"Since then we've had more innovation and competition enter the superannuation, wealth management and advice industry than in its entire history," Mr Dunnin said. "The winners are without a doubt consumers and the losers are slow-to-move incumbents. Superannuation is being Uber-ised."
He added that it also created a new set of risks that regulators and superannuation trustees need to consider.
Caitlin Fitzsimmons is editor of Money. Find her on Facebook and Twitter.
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