Silicon Valley and Boston-based venture capital firm, Summit Partners, is expected to invest $25 million into Sydney-based fashion e-tailer, The Iconic.

According to The Australian Financial Review, the new deal is the third international investment for the online retailer and will provide working capital for new stock as well as website improvement.

It is expected to be confirmed later this week. Adam Jacobs, MD of The Iconic, told the AFR the Australian investment community is very conservative towards online retail and e-commerce in general.

“So far it’s been the international investors who have been seeing the benefit of our growth,” he said.

“The Australian financial industry in general is more conservative, the investment mandates are more conservative with higher hurdles and more stringent requirements than you would find in America or Europe where there’s more speculation investment.

“For Australian investors it’s more of a leap of faith to jump into a venture like ours, but we think we could a form a really positive and hugely beneficial partnership with a potential Australian investor.”

Scott Collins, MD of Summit, said Summit was attracted to companies that built long term value. “The Iconic has shown dynamic growth a in short period of time, we are thrilled to support The Iconic story and participate in Australian online retail,” he said.

In September last year, US company JP Morgan Asset Management invested $25 million into The Iconic.