Clayton Larcombe wasn’t supposed to end up here. His career began on the trading floors of Morgan Stanley and JP Morgan, navigating the high-stakes world of global finance. But something was missing. “I didn’t really want to climb the corporate ladder anymore,” he admits. “I didn’t want to become a new director. It became less about the money for me, and more about what I was building.”
That shift led him away from the structured confines of multinational banks and into the unpredictable world of venture capital. Today, Larcombe is the driving force behind Pacific Partners, a firm built on conviction. His ambition? Not to create another Sequoia or BlackRock, but something more deliberate, more personal, and ultimately, more impactful.
Finding purpose in risk
Larcombe’s first major foray into venture capital wasn’t a calculated move – it was instinct. He saw potential in an emerging Australian betting company, Picklebet, and took a significant early position which has quickly emerged as the cutting-edge platform for the next generation. “It’s been an unbelievable journey and passion in my life, and I’ve loved every minute of it,” he says. “It’s more about the founder than the investment, really. You’re investing in the person and the people, as much as the technologies.”
That passion led to the formation of Pacific Partners, a firm with a laser focus on AI-driven disruption. Instead of spreading investments thinly across industries, Pacific Partners concentrates on four sectors where AI is reshaping the landscape: healthcare, gaming, defence, and enterprise solutions. “Most VCs spread capital across 10-plus industries,” he says. “We stay focused where we know AI is driving real change.”
Pacific Partners operates through interconnected hubs in Sydney (APAC), San Francisco (Americas), and Abu Dhabi (MENA), with Abu Dhabi serving as the firm’s headquarters. This global positioning enables access to key markets: “25 percent of our deal flow comes from Australia’s thriving AI ecosystem, 50 percent from the Bay Area’s foundational AI model developers, and our MENA presence gives us direct exposure to the region’s $6.8 billion AI investment commitments.”
A different kind of venture firm
Unlike traditional venture firms that prioritise rapid deployment of capital, Pacific Partners takes a patient, hands-on approach. “Sequoia and these big funds have gotten so big that their main goal is generating revenue through management fees,” Larcombe explains. “They just have too much money to deploy. That’s not investing – it’s just pushing money around.”
Pacific Partners operates differently. “I’d rather have 20 winners than spread investments across 200 companies,” he says. “The alignment is with the success of the business and the founders, not in generating daily revenue. We succeed when they succeed.”
That philosophy translates into active engagement. “Getting investment from Pacific Partners is very different from getting a cheque from a large fund,” Larcombe says. “It’s deep hand-holding. A lot of these big firms just want quarterly reports. You won’t hear from them in between. With us, it’s a partnership.”
Unlike mega-funds like Sequoia and a16z, which manage over $20 billion and must deploy capital at high velocity, Pacific Partners takes a more concentrated approach. “We typically write $1-5M cheques in AI-native startups. Without the pressure to deploy rapidly, we can conduct deep technical due diligence and maintain meaningful board influence with 10-20 per cent ownership stakes.”
His passion for venture capital is unmistakable. “My wife knows exactly when I’ve been on a venture call,” he laughs. “She’s like, ‘You’ve got that happy face again.’”
Committing to the Middle East
If there’s one thing Larcombe is focused on, it’s the Middle East. “The UAE is set to become the next Silicon Valley of the AI revolution,” he says. “The tech-forward leadership, tax policies, world-class education systems – everything is aligning for this to be the place where the next generation of great companies is built.”
Pacific Partners isn’t just talking about it, they’re putting down roots. The firm is setting up headquarters in Abu Dhabi and deploying 25 percent of its capital into Middle Eastern startups. “We’re already on the ground,” Larcombe says. “Licensing, operations – everything is in motion.”
The commitment isn’t just financial – it’s personal. Larcombe himself is relocating to Abu Dhabi, an ambitious move that highlights his belief in the region’s potential. “This isn’t a satellite office or a token investment,” he says. “This is home base.”
He also points to the UAE’s evolving funding ecosystem. “Sovereign wealth funds are pouring billions into AI innovation. It’s not just talk – it’s real.” The firm is already integrating into the local ecosystem. “We’re pledging 25 percent of our fund specifically to Middle East-based startups. Our approach involves leveraging global connections – particularly in Silicon Valley – and bringing mentorship and capital to promising Middle East founders.”
The founder’s VC
Larcombe isn’t just focusing on AI or the Middle East – he’s investing in people. “I look for passion, drive, and a real sense of purpose,” he says. “Most founders are bad with money, and that’s fine. What I want to know is – are they obsessed with what they’re building? Are they ready for the battle?”
His investment decisions often come down to gut instinct. “I can usually tell pretty early,” he says. “I need to know that when I look someone in the eye, they believe in this. They’re going to fight for it.”
Beyond the numbers, it’s about mindset. “If you don’t fail, you’re not trying,” he says. “So I need founders who are ready for that, who understand that setbacks are part of the journey.”
Generative AI is at the core of Pacific Partners’ investment strategy. “Rather than building new foundational models, we focus on the application layer – solutions built on top of large-scale models. Whether it’s healthcare, SaaS, gaming and media, or defence, we see the biggest value being unlocked there.”
The firm is particularly interested in sectors like AI-driven health & wellness, media/gaming, defence, and enterprise solutions. “AI is transforming healthcare by unlocking new possibilities in diagnostics, drug discovery, and personalised medicine. A prime example is Evo 2 – an open-source model trained on 9.3 trillion DNA letters across 128,000 genomes. It enables startups to build specialised tools for genomic research and personalised cancer treatments.”
A vision for the future
Larcombe’s long-term vision isn’t about chasing headlines or building the biggest fund. “At one point, I thought I wanted to build another Blackstone or Sequoia,” he admits. “But something changed. I don’t want to build something massive. I want to build something meaningful.”
That means staying small, staying focused, and staying patient. “We’re building a billion-dollar fund,” he says. “That sounds big, but in venture capital, it’s actually nimble. It lets us stay selective. It lets us focus on quality over quantity.”
Venture capital has long been about size, speed, and volume. But Larcombe is making a different argument: what if the future of investing wasn’t about spreading capital widely, but about applying it wisely? What if success wasn’t just about returns, but about building companies that truly matter?
“I know what I want to do for the next 30 years of my life,” he says. “And that’s building something real.”
And in a world where AI is rewriting the rules of technology and business, Pacific Partners is set to shape that future – one deliberate investment at a time.
Words by Kate-Lynne Wolmarans
Interview by Tala Michel Issa
Photography by Steven Popovichs
Design by Geri B. Sonny