Venture capital startup The Fund launched in Australia – TechCrunch

Fund Australia Team (left to right): Elysia McDonald, Adrian Petersen, Georgia Vidler, Ed Taylor, Todd Deacon

FundsEarly stage investment firms focused on pre-seed and seed startups will be down due to the latest expansion. The fund was founded in New York in 2018. Launched in Los Angeles, London, Rocky Mountains, Midwest too.

Co-founder Jenny Fielding, Managing Director and Managing Director of Techstars New York, said the fund will identify new areas for expansion based on demand from the local startup ecosystem and will launch in Australia earlier this year. .

In addition to participating in the first control round, the fund is building a community of founders and other leaders from successful startups. Not only do they offer mentoring, but they also provide capital as a limited liability company. The fund currently has a network of around 400 founders and invests around 120 through the fund.

In each region, the fund is managed by an investment committee of four members. In Australia: Todd Deacon, CEO of Techstars; Elicia McDonald, Director of AirTree for Venture Company; Adrian Petersen, co-founder of AfterWorks Ventures. Formerly Product Manager at Canva Georgia Vidler. Fund Australia’s sponsor base will include 50 people, including founders of startups such as Rod Hamilton of Culture Amp, Alex Zaccaria of Linktree and Kate Morris of Adore Beauty, as well as executives from Canva and Safety Culture. Fund Australia’s LP helps recruit promising startups from the network and refer them to the investment committee for review.

The fund is targeting $ 3.5 million, investing in around 40 startups and creating checks of $ 50,000 to $ 100,000 in 24 months. LLCs and other members of their community around the world provide advice as portfolio companies grow.

Deacon told TechCrunch that it was important for Fund Australia to focus on very early start-ups as the pre-seed / seed funding gap widens. He Report by Startup Aus, the Australian start-up advocate, angel investors and seed investment in Australia have declined in recent years, both in terms of deal volume and total value.

The fund’s assumption is that many early stage funds in Australia and other parts of the world focus on later stages as they raise more money, Deacon added. This also happened in New York City and was one of the driving forces that helped create the fund in the first place.

“There was this gap in the seed funding. There are two main points in building a truly strong community: helping the founders and closing the funding gap. It helps to solve it to some extent. We have a lot of power to introduce checks early and provide the founders with access to the network, ”he said.

By writing an advance check, the fund can see the flow of transactions before other venture companies or limited liability companies, and a small check is beneficial for start-ups.

“We don’t do the majority of their pay increases, but we still have very high quality capital,” Deacon said. “We have this network of investors. Why some of us [LPs] I am interested in making a profit, but I also want to give back to the prosperity of Australian and New Zealand businesses. “

The availability of the Fund’s international network is useful for Australian start-ups, where many companies are looking to expand internationally from the outset.

Australian unicorns like Atlassian and Kamba have also helped strengthen the Australian startup ecosystem, Bidler said. “It looks like a turning point in the startup ecosystem. Here is a community of all those former founders and senior operators concerned with giving back, creating and strengthening the ecosystem. . “

Fund Australia wants to create a diversified portfolio regardless of the industry. The fund has focused on gender equality from the start. Each regional investment committee is made up of two men and two women, with around half of the LPs being women and over 40% of the total capital is for founders. Widler says it was a big draw for her.

“For me, and for most of the Australian network, and for many women in the Australian tech industry, I think they are also very interested in investing in the next generation of female founders.” She said.

Venture capital startup The Fund launched in Australia – TechCrunch Venture capital startup The Fund launched in Australia – TechCrunch

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