Melbourne now has a new A$10 million venture fund designed to promote early stage entrepreneurs.

Backed by US and Australian investors, Signal Ventures, will focus on entrepreneur-friendly, seed investing and is expected to invest up to A$250,000 per project.

The company will look to start-ups in areas of B2B and prosumer SaaS, technologies that connect communities and enable communication - and mobile app disruption of web incumbents.

Signal is the creation of Melbourne-based start-up industry backer, Atlanta Daniel, and experienced US-based tech investor Niel Robertson.

The new company is seeking to attract start-ups in professional software as a service, technologies that connect communities and enable communication and mobile app disruption of web incumbents.

The fund has been backed by mostly Australian financiers, but well-established US investors have also supported the venture, including include global start-up accelerator Techstars, VC fund Foundry Group and fintech fund, Ribbit Capital.

Mr Robertson will move between Australia and the US. Ms Daniel will focus on a national search for start-up investments from Melbourne.

Mr Robertson told local media outlets that Australia was on the verge of unprecedented growth in its start-up ecosystem, opening up an opportunity for early stage capital to facilitate growth.

Signal Ventures joins a growing line-up of local venture capital firms focussing on local start-ups.

Mr Robertson enjoys the competition favouring a syndication model for the start-up sector where investment rounds are populated by many stakeholders, including other funds, such as Blackbird and Airtree and Rampersand.

Ms Daniel told local media that entrepreneurs needed access to experienced mentors and strong follow-on networks which Signal would provide. She said Signal would offer  services and mentoring that would ensure start-ups thrive.

Signal Ventures has partnered with Cornwall Stodart for fund formation and advisory services.

The company plans to announce its first close soon and will be making its first investments as early as April, 2016.