SydStart 2010 Spring Andrew Stead of ATPi - Where is the money syd start

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Where is the money?

Andrew Stead

Director Business Development

[email protected]

+612 9209 4444


Who is the right investor for me?

Funds needed

Bu

sin

ess

Po

ten

tia

l

Low

Low

High

Hig

h

Forget it Organic

AngelVC

• What is the potential for my

business?

• What do I need to do to

reach the potential?

• How much money do I

(really) need?

• When do I need the

money?

• What type of investor is

right for my business?

• What are they interested

in?

• What do they want to see?


Who has the money?

Future Capital ($2.5m)

Y-combinator style – e.g. Startmate

($25k/deal)

Angel groups

Networks

Angels

FFF

Bootstrapping

<$250k

CVC REEF ($40m)

BITS (x10) (~$10m

ea)

IIFs (x9) (~$40m ea)

Blue Cove

Innovation Capital

($50m)

Cleantech Ventures ($50m)

Yuuwa ($40m)

OneVentures ($40m)

Brandon ($40m)

Aus Capital Ventures ($7), Playford,

ANU Connect ($30m), Uniseed

($60m), Trans-Tasman ($30m), MRCF

($30m), TerraRossa/BioInnSA

PFM

Cornerstone

>$250k

TVP

Nanyang

A&B

CM Capital ($154m)

SXVP ($150m)

GBS ($125m)

Starfish ($185m)

>$2m

ClosedLast InvestmentEarly-MidOtherFund

stage


Who has the money?

Future Captial ($2.5m)

Y-combinator style – e.g. Startmate

($25k/deal)

Angel groups

Networks

Angels

FFF

Bootstrapping

<$250k

CVC REEF ($40m)

BITS (x10) (~$10m

ea)

IIFs (x9) (~$40m ea)

Blue Cove

Innovation Capital

($50m)

Cleantech Ventures ($50m)

Yuuwa ($40m)

OneVentures ($40m)

Brandon ($40m)

Aus Capital Ventures ($7), Playford,

ANU Connect ($30m), Uniseed

($60m), Trans-Tasman ($30m),

MRCF ($30m), TerraRossa/BioInnSA

PFM

Cornerstone

>$250k

TVP

Nanyang

A&B

CM Capital

($154m)

SXVP ($150m)

GBS ($125m)

Starfish ($185m)

>$2m

ClosedLast InvestmentEarly-MidOtherFund

stage

1

2

3

45


Investor categories

• 1. Closed for business – desperate to exit investments, smaller funds all Gov supported, without successful track record they cannot raise the next fund (-5% IRR).

• 2. The big guys – a rare species, up to 10% of fund for 1 company so represent 60 deals, probably 10-12 deals left.

• 3. The only hope – mostly Gov and Uni supported funds, many have limited footprint, restricted investment sizes and small teams limit deals, ~40 deals left for 3-5 years for IIFs.

• 4. A good start – diverse range of early stage investors, more often smart money.

• 5. Do it yourself – only way to begin, freedom to prove the business model, retain control, don’t have to give the business away.


Who got the money?

Domain Portfolio ($240k)

MyGuestList

CheapHotels

DriveMyCar

Big Richard

expanz

Auraya ($1.5m)

iCentana ($1.5m)

Jump To It ($1.3m)

Agworld

Atlassian ($60m)

Spreets ($2m)

2010

Future Capital

Future Capital

Sydney Angels

Sydney Angels

Green Lane

CM Capital, PFM

Sydney Angels, angels

Uniseed

Uniseed

Playford

ANU Connect

Uniseed, Brisbane Angels

Innovation Capital

Brandon, MRCF, Uniseed

14 deals**

<$250k

>$250k

>$2m

Deals*

Future Capital

Future Capital

Future Capital

Sydney Angels

Green Lane

Green Lane

Our Wishing Well ($220k)

SMS Central ($150k)

Hungry Giant

BuzzNumbers

iwannaticket

CPS Group

Yuuwa, Curtain

Uni

A&B led angels

Yuuwa

SpeeDx ($1.4m)

Posse ($1.4m)

Manjrasoft ($600k)

Otifex ($564k)

Neuro Vision Technology

($500k)

Mylexa ($500k)

Progel ($400k)

Accel

Angels (EU)

Wine Preserva ($2.5m)

Fibrotech ($3m)

12 deals2009

** 30-40 deals/yr in previous years, future deal

rates probably 10 VC and 5-10 Angel/yr

* First round deals from known funding sources


Bootstrapping, almost the only choice

• Girlfriend funding

• Savings

• Credit cards

• Getting free stuff

• Customers pre-paying

• Consulting (in the space)

• Sell stuff!

SydStart 2010 Spring Andrew Stead of ATPi - Where is the money syd start

Business

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