Australia's cash-starved venture capital sector is set to get a shot in the arm, as Brisbane-based Blue Sky Alternative Investments seeks to raise $30 million for its second venture capital fund.

Blue Sky Venture Capital investment director Elaine Stead has been on a nationwide roadshow to attract investors to the fund, which she hopes will raise as much as a third of Australia's total venture capital pool.

Venture capital is relatively underfunded in Australia. The industry managed to raise only $111 million in the 2013 financial year, according to the Australian Private Equity & Venture Capital Association, compared with $30 billion in the US.

While she believed the amount invested in Australian venture capital funds was beginning to increase, Ms Stead said the lack of money was actually providing more possibilities for good returns.

The private equity and venture capital division at Blue Sky has delivered a 16.3 per cent internal rate of return after fees since its inception.

''We're telling our investors that the opportunities are strong because there is so little competition,'' she said. ''We're able to cherry pick and get access to the very best investment opportunities available in Australia.''

The new fund will have its first close in late August.