Avsnitt
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Episode Summary:
In this engaging episode, the hosts Cheryl Mack and Maxine Minter are joined by Georgie Turner, a partner at Tidal, to delve into the nuances of early-stage investing, cross-border strategies, and the evolving landscape of venture capital. The episode opens with a lively introduction to Georgie's background and her journey from Bailador to founding Tidal, a fund focused on B2B SaaS and AI. The hosts discuss the challenges and rewards of building a fund, the intricacies of capital management, and the importance of alignment between founders and investors.
Throughout the conversation, the trio explores the differences between the Australian and US venture capital ecosystems, touching on themes such as market size, customer sophistication, and the importance of domain expertise in founding teams. Georgie also shares insights on navigating the AI revolution and its impact on the tech stack and business models. The episode concludes with a reflective discussion on bravery in the venture capital space, emphasizing the optimistic and sometimes illogical nature of the industry.
Key Takeaways:Cross-Border Investment: Georgie Turner discusses the importance of having a cross-border investment strategy, particularly focusing on the differences between the Australian and US venture capital ecosystems.Capital Management: Insightful exploration into how proactive capital management and accurate valuation alignment can significantly impact the success of early-stage investments.AI Investment: Detailed discussion on how AI is transforming the tech landscape and what investors should look for in AI-driven companies.Scaling Challenges: The episode highlights the challenges of scaling companies in different markets and the importance of market timing, product quality, and operational expertise.Bravery in Venture Capital: Reflections on the inherent bravery required in the venture capital profession, given its optimistic and sometimes illogical nature.Sponsors:Thanks to our sponsors for helping to make this episode of First Cheque possible.
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Episode Summary:
In this episode of First Cheque, hosts Cheryl Mack and Maxine Minter sit down with biotech investment expert Paul Kelly. The conversation demystifies the complex world of biotech investing, making it accessible for even those who are new to the field. Paul shares his journey from a practising physician to a pioneering investor in the biotech space, offering valuable insights into the industry's rapid evolution and high stakes.
Paul explains the fundamentals of biotech investing, including the typical risks and rewards, the lengthy timeframes involved, and the importance of understanding the science and market potential behind each investment. He also touches on the significant advances in genomics and synthetic biology, emphasising how technology and data analysis are accelerating innovation in the field. The discussion delves into the importance of syndication for early-stage investments, the critical milestones that de-risk investments, and the role of pharmaceutical partnerships in increasing the likelihood of success.
Key Takeaways:Understand the Risks and Rewards: Biotech investing involves a high level of risk and typically long hold periods, but the potential rewards can be substantial.Syndicate Investments: Due to the complexity and capital intensity of biotech, syndicating with experienced investors and funds is crucial for mitigating risk.Stages of Investment: Key milestones in biotech investing include achieving safety and efficacy in clinical trials, with significant value inflections at each stage.Technological Impact: Advances in genomics, AI, and data analysis are revolutionizing the speed and accuracy of biotech innovations.Healthcare Economics: Understanding the economic impact and potential reimbursement scenarios is essential for assessing biotech investments.
Sponsors:Thanks to our sponsors for helping to make this episode of First Cheque possible.
Vanta: Join 7,000 global companies like Atlassian and Dovetail that use Vanta to build trust and prove security in real-time. Get 10% off https://dayone.fm/vanta
Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
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Download the Turo app and book cars from $38/day. https://dayone.fm/turo
The Day One NetworkFirst Cheque is part of Day One, the podcast network dedicated to founders, operators & investors.To learn more, join our newsletter to be notified of new and upcoming shows. The only content we create is content that will help Australian founders.
If you want to learn about upcoming guests and when a new First Cheque episode is available, join the First Cheque newsletter.
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Saknas det avsnitt?
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Episode Summary:
In this episode, Cheryl Mack and Maxine Minter dive into the intricate details of tax incentives and structures for angel investors in Australia. Tackling the seemingly dry topic of tax with enthusiasm, they explore how these regulations can substantially benefit early-stage investors. Cheryl brings her wealth of experience to the table, elucidating the complexities of acronyms like ESV CLP and ASIC, while Maxine peppers the conversation with insightful queries and contextual examples.
Cheryl explains the criteria and benefits associated with Early Stage Innovation Companies (ESIC) and Early Stage Venture Capital Limited Partnerships (ESV CLP). She details how these structures facilitate sophisticated tax offsets and capital gains exemptions for investors. Throughout the discussion, they highlight the importance of understanding these incentives to optimize investment returns. The episode culminates with practical advice on investing via trusts and navigating the nuances of capital call schedules, reflecting the duo's deep dive into the subject matter.
Key Takeaways:Understanding ESIC: Learn about the Early Stage Innovation Company (ESIC) designation in Australia, its eligibility criteria, and the significant tax benefits it offers. ESV CLP Benefits: Discover how Early Stage Venture Capital Limited Partnerships (ESV CLP) and Venture Capital Limited Partnerships (VCLP) offer substantial tax incentives, including offsets and capital gains exemptions. Investment Structures: Get insights into the complexities of investing through safes (Simple Agreement for Future Equity) and how ESIC status impacts tax benefits. Leveraging Trusts: Explore the functional benefits and considerations when investing through discretionary (family) trusts, particularly in relation to income distribution and tax efficiency. Managing Capital Calls: Understand the importance and mechanics of capital call schedules within the context of fund investments and their fiscal implications.
Sponsors:Thanks to our sponsors for helping to make this episode of First Cheque possible.
Vanta: Join 7,000 global companies like Atlassian and Dovetail that use Vanta to build trust and prove security in real-time. Get 10% off https://dayone.fm/vanta
Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
Turo: Turo is the world's largest carsharing marketplace and it's the perfect app for travel.
Download the Turo app and book cars from $38/day. https://dayone.fm/turo
The Day One NetworkFirst Cheque is part of Day One, the podcast network dedicated to founders, operators & investors.To learn more, join our newsletter to be notified of new and upcoming shows. The only content we create is content that will help Australian founders.
If you want to learn about upcoming guests and when a new First Cheque episode is available, join the First Cheque newsletter.
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Episode Summary:
In this episode of the First Cheque podcast, Cheryl Mack and Maxine Minter delve into the intricacies of early-stage investing, focusing on the importance of secondaries, the value of strong founder-investor relationships, and how to navigate high valuations. This episode is a milestone as it's entirely driven by audience questions, providing targeted insights and practical advice for investors and founders alike.
Cheryl and Maxine kick off by discussing the significance of secondaries in the investment ecosystem. They explore how secondaries can provide liquidity options for founders, early employees, and initial investors, comparing the maturity of secondary markets in the US versus Australia. They touch on the role of secondary funds, the impact of early liquidity on the ecosystem, and how this federal flow of funds can encourage re-investment into new startups.
Next, the duo dives into their anti-portfolios, sharing insights from companies they passed on and reflecting on biases and lessons learned. They also address gender diversity in the investment landscape, critiquing the current state of gender equity in the Australian startup ecosystem. Furthermore, Cheryl and Maxine share their strategies for balancing valuations, particularly in the context of owning small equity stakes as angel investors.
Key Takeaways:Secondary Transactions: Understanding the role and impact of secondary transactions can provide essential liquidity to founders and early investors, fostering a healthier investment ecosystem.Anti-Portfolio Learnings: Reflecting on missed investment opportunities reveals biases and allows investors to refine their criteria and improve decision-making.Gender Diversity: There is a significant need to address the gender gap at all levels of the investment ecosystem, from founders to fund managers and LPs.Valuation Strategy: Evaluating whether a company can significantly grow its valuation by the next funding round is crucial in assessing high valuations.Founder-Investor Relationships: Strong relationships between founders and investors are imperative for successful fundraising and long-term collaboration.Resources:Scale Investors: led by Samar, focusing on women-led companies.EQUITY DIRECTORY: A data-focused initiative to improve reporting on gender metrics in the investment community.AirTree Pioneers Program: Supporting diverse early-stage founders.First Cheque Podcast Voicemail: Submit a questionSponsors:Thanks to our sponsors for helping to make this episode of First Cheque possible.
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Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
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Download the Turo app and book cars from $38/day. https://dayone.fm/turo
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Episode Summary:
In this episode, host Maxine Minter and co-host Cheryl Mack dive into the world of growth stage investing with guest Christina Fa from NewView Capital. They explore the reasons why ex-investment bankers transition to VC, discuss the nuances of growth-stage investing, and shed light on the importance of secondaries in the current market landscape. Christina shares insights on company scaling in different ecosystems, the impact of GenAI innovation, and the changing dynamics of venture capital.
Key topics covered include the unique factors influencing growth stage investments, the difference between primary and secondary investing, and the significance of liquidity for investors and founders. The conversation delves into the evolving venture capital landscape and the role of secondary transactions in unlocking value and increasing market liquidity.
Key Takeaways:Growth stage investing focuses on scaling proven products and ideas to dominate the market.Secondaries play a crucial role in providing liquidity to early investors, employees, and founders.The US offers a mature ecosystem with a deep talent pool for scaling companies, while Australia nurtures a hungry and talented workforce.Investors can access growth stage opportunities through platforms like Angellist and secondary transaction platforms.Exploring new frontiers in AI and emerging technologies drives investor interest and excitement in growth-stage companies.Notable Quotes:"Investing in the AI space is both exciting and challenging due to the rapid platform shift and exploration phase." - Christina Fa"Unlocking liquidity through secondaries is beneficial for both investors and the ecosystem as a whole." - Christina Fa"The US ecosystem offers a deep talent pool, while Australia fosters a culture of first principles thinking and innovation." - Christina FaResources:NewView CapitalNewView Capital LinkedinChristina Fa LinkedInSponsors:Thanks to our sponsors for helping to make this episode of First Cheque possible.
Vanta: Join 7,000 global companies like Atlassian and Dovetail that use Vanta to build trust and prove security in real-time. Get 10% off https://dayone.fm/vanta
Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
Turo: Turo is the world's largest carsharing marketplace and it's the perfect app for travel.
Download the Turo app and book cars from $38/day. https://dayone.fm/turo
The Day One NetworkFirst Cheque is part of Day One, the podcast network dedicated to founders, operators & investors.To learn more, join our newsletter to be notified of new and upcoming shows. The only content we create is content that will help Australian founders.
If you want to learn about upcoming guests and when a new First Cheque episode is available, join the First Cheque newsletter.
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Episode Summary:
In this episode, Cheryl Mack and Maxine Minter engage in an enlightening conversation with Bronwen Clune, discussing her journey from journalism to startups and back to media. Bronwen shares insights on the Australian startup ecosystem, the future of journalism, and the intersecting landscapes of politics, markets, and entrepreneurship. Delving into the impact of risk appetite, the tension between traditional markets and startups, and the evolving dynamics of super funds, the discussion provides a comprehensive view of the current landscape.
Key themes include the shifting risk perceptions in Australia, the resilience and adaptability of Australian startups, and the impact of broader economic and political factors on the ecosystem. With a focus on building stronger companies and navigating challenges, Bronwen offers valuable perspectives on driving innovation and growth in an ever-changing environment.
Key Takeaways:• Risk appetite plays a fundamental role in distinguishing between traditional markets and startups.
• Australia's startup ecosystem demonstrates resilience and efficiency in the face of challenges.
• The housing crisis and changing economic landscapes are fuelling interest in startups and alternative investments.
• Tension between super funds and risk-taking behaviours may influence the entrepreneurial landscape.
• Australian founders are embracing independence and innovation, shaping the future of the industry.
Notable Quotes:• "I think Australia punches above its weight in terms of producing founders that international investors are looking at favourably." - Bronwen Clune
• "The housing crisis has spurred interest in alternative investments as young people seek to grow capital." - Bronwen Clune
• "Risk appetite, or lack thereof, is a defining factor between traditional market players and startup enthusiasts." - Bronwen Clune
Resources:• Capital Brief Website
• Bronwen Clune's LinkedIn Profile
Sponsors:Thanks to our sponsors for helping to make this episode of First Cheque possible.
Vanta: Join 7,000 global companies like Atlassian and Dovetail that use Vanta to build trust and prove security in real-time. Get 10% off https://dayone.fm/vanta
Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
Turo: Turo is the world's largest carsharing marketplace and it's the perfect app for travel.
Download the Turo app and book cars from $38/day. https://dayone.fm/turo
The Day One NetworkFirst Cheque is part of Day One, the podcast network dedicated to founders, operators & investors.To learn more, join our newsletter to be notified of new and upcoming shows. The only content we create is content that will help Australian founders.
If you want to learn about upcoming guests and when a new First Cheque episode is available, join the First Cheque newsletter.
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Episode Summary:
In this episode, Maxine Minter and Cheryl Mack delve deep into the essential considerations of portfolio allocation, focusing on diversification versus concentration in early-stage investing. They explore the concept of portfolio construction, risk management, power law dynamics, and the importance of strategy in maximizing returns while mitigating risks.
Key themes discussed include the spectrum of diversification, the impact of concentrated investments, the role of informational asymmetry in decision-making, the power of outliers in generating alpha, and the influence of expertise and thesis investing on portfolio performance.
Key Takeaways:Portfolio construction is crucial in early-stage investing to manage risks and optimize returns.Diversification versus concentration impacts the average quality and performance of a portfolio.Specialized first and second funds tend to outperform, emphasizing the importance of focused investment strategies.The power law concept highlights the significance of outliers in driving fund performance.Investors must strike a balance between diversification and concentration based on risk tolerance and investment goals.Notable Quotes:"Thinking about building your investment strategy and what is the right level of risk tolerance is essential for successful portfolio construction." - Maxine Minter"The power law is king in the investment landscape, emphasizing the impact of outliers on fund performance." - Cheryl MackSponsors:Thanks to our sponsors for helping to make this episode of First Cheque possible.
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Episode Summary:
In this episode of First Cheque hosts Cheryl Mack and Maxine Minter sit down with the distinguished investor Ash Fontana to explore the intricacies of early-stage investing and the evolving landscape of artificial intelligence (AI). The conversation delves into Fontana's diverse experiences, ranging from his formative years building web-based marketplaces to his critical role in establishing the AI investment frontier.
Fontana shares a captivating narrative of his investment philosophy, advocating for the significance of first-check investments in shaping the trajectories of startups. With an emphasis on determining the long-term competitive advantages of AI ventures, the discussion uncovers the importance of specialization and the strategic deployment of venture funds amidst a rapidly transforming technology sector. Key themes revolve around adapting venture capital models, the intersection of network building, and the fortune of investment careers, providing listeners with a wealth of actionable insights.
Key Takeaways:First Cheque investments are critical in establishing a startup's potential and culture.AI investments should focus on companies that exhibit a sustainable competitive advantage, potentially characterized by data network effects.Venture Capital (VC) requires specialisation, especially in fast-evolving fields like AI, to keep pace with rapid advancements and make informed investment decisions.The traditional VC model faces criticism for its performance and lack of innovation; exploring models with lower fees and higher carry could better align incentives.Building and maintaining a robust network is essential for success and longevity in the venture capital industry.Notable Quotes:"The existence proof of adding value is that you allowed the entity through which all subsequent value is created to exist.""As soon as you're competing, you're losing. You should just aim to be in non-competitive situations.""I invest in technology cycles, not market cycles.""I find it really hard to work for other people and in big companies, but I would have worked for a big growth stage or growth stage fund, like Insight, Summit, Bain, one of them.""The bigger the network you can build, the better, the more useful you will be, and therefore, the more lucky you will get."Resources:Ash Fontana's book: "The AI-First Company"Ash Fontana's LinkedIn profileThanks to our sponsors for helping to make this episode of First Cheque possible:Vanta: Join 7,000 global companies like Atlassian and Dovetail that use Vanta to build trust and prove security in real-time. Get 10% off
Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
Turo: Turo is the world's largest carsharing marketplace and it's the perfect app for travel. Download the Turo app and book cars from $38/day Download the Turo app and book cars from $38/day. https://dayone.fm/turo
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Episode Summary:
In this episode of the First Cheque podcast, our co-hosts Cheryl Mack and Maxine Minter welcome venture capital trailblazer Marvin Liao to discuss the multifaceted experience of early-stage investing, the evolution of global startup ecosystems, and the profound lessons learned from economic cycles in the tech industry. The conversation kicks off with stories from Marvin's background in Silicon Valley, including his first steps into the startup world, a decade at Yahoo, angel investing experiences, and defining years with 500 Startups.
Marvin delves into the intricate dynamics of venture capital, sharing his hands-on approach to international investing and offering a candid perspective on navigating competitive markets during downturns. With an emphasis on founder qualities, market-fit, and the significance of geographies like the US for ambitious startups, Marvin provides a remarkable guide for those looking to excel in the unpredictable venture capital terrain.
As the dialogue unfolds, Marvin's strategic astute observations reveal practical strategies for both investors and entrepreneurs looking to leverage opportunities within the constantly shifting sands of the tech landscape.
Key Takeaways:Successful early-stage investing requires engaging with 'unconventional' ventures before they gain popularity, often necessitating courage to oppose the crowd.The true test of an investor is how one navigates downturns, emphasising resilience and adhering to personal investment theses rather than market sentiment.The US remains a central hub for ambitious startup founders due to its unmatched network effects and competitive ecosystem that fosters excellence.Marvin advocates a founder-first investment philosophy, prioritizing the drive, capacity to learn, and responsiveness of founders over all else.Cultural capital, such as an appreciation for science fiction, is considered crucial for anyone investing in technology's future, as it helps shape one's vision for innovation.Notable Quotes:"Chips on shoulders, leads to chips in pockets." - Marvin quotes Josh Wolf to describe the motivation needed for successful entrepreneurship."How you do anything is how you do everything." - A philosophy Marvin adheres to when assessing founder diligence and reliability."Steel sharpens steel." - On the importance of founders being present in high-impact ecosystems to push themselves to their limits and grow.Resources:Marvin Liao's personal ventures and insights can be followed through his LinkedIn profile.Reference to Lux Capital and Josh Wolf's investment philosophy might be of interest to listeners who wish to explore further.Thanks to our sponsors for helping to make this episode of First Cheque possible:Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
Turo: Turo is the world's largest carsharing marketplace and it's the perfect app for travel. Download the Turo app and book cars from $38/day Download the Turo app and book cars from $38/day. https://dayone.fm/turo
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Episode Summary:
In this thought-provoking episode of First Cheque experienced investors Cheryl Mack and Maxine Minter delve into the meticulous world of follow-on investment strategies. The episode serves as a beacon for those who wish to refine their approaches in early-stage investing, especially as they grapple with the decision of whether to follow on or not in subsequent investment rounds. The conversation explores the intricate balance between optimizing returns and supporting growing companies at various funding stages.
Cheryl represents the school of thought advocating for doubling down on winners, focusing on reserving funds for follow-on investments based on the company's performance. Maxine, on the other hand, takes a contrarian view, emphasizing the importance of an initial strong pre-seed commitment without reserving for follow-on. Together, they unpack the underpinnings of each method, providing listeners with an insightful analysis centred on investment strategy, fund management, and the implications of the power-law in startup investing.
Key Takeaways:A follow-on investment strategy involves investing additional funds in a company during later financing rounds, usually at a different share price.Traditional wisdom encourages investors to reserve funds to double down on winning companies, but Maxine challenges this idea, promoting initial, larger investments at the pre-seed stage.Discussion on the importance of pro rata rights and the potential signaling risks associated with not following on in subsequent rounds.Cheryl shares her angel investment approach, which emphasizes growth metrics evaluation, fund allocation decisions against other opportunities, and backing companies that have shown significant progress.The conversation highlights the need for personalized investment strategies that reflect individual goals and resources, as well as the potential influence of received wisdom on investment decisions.Notable Quotes:"The conventional wisdom... you want to reserve follow on money in order to double down on your winners." - Cheryl Mack"If you want to maximize IRR, then it's deploying all of your capital in that first check." - Maxine Minter"The power law operates in our industry... it's not necessarily a one for one trade off... you need to make resource allocation trade offs." - Maxine Minter"I really have to believe that I'm still going to get outsized value from this valuation further on." - Cheryl Mack"The only thing that stops you from getting squeezed out over time is adding enormous value and having a great relationship with the founders." - Maxine MinterThanks to our sponsors for helping to make this episode of First Cheque possible:Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
Turo: Turo is the world's largest carsharing marketplace and it's the perfect app for travel. Download the Turo app and book cars from $38/day Download the Turo app and book cars from $38/day. https://dayone.fm/turo
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Episode Summary:
In the latest instalment of our podcast series, Cheryl Mack and Maxine Minter delve into the intricate world of early-stage investing, shedding light on the varied approaches to gaining investment conviction. This episode serves as a guide for both novice and experienced investors who aim to refine their decision-making strategies when backing new ventures.
As Cheryl and Maxine unravel the decision-making fabric of early-stage investing, listeners are taken on a journey through the critical thought processes that investors employ. From angel investing intuition to fund management rigour, the diverse strategies and considerations are laid bare. Key topics such as founder assessment, market sizing, and investment criteria are explored in detail, offering a valuable distilled wisdom that promises to enhance the listener's own perspective on startup investment.
Key Takeaways:Every investor has a unique process for achieving conviction in startup investments, which can evolve over time through experience and iterative learning.The consideration of factors like founder qualities, market potential, and existing competition varies between individual investors and forms the basis of their investment decisions.Portfolio construction and risk assessment play significant roles in an investor's decision to back a company, mainly when operating within a fund structure.Intuition and instinct also influence investment choices, sometimes siding with conviction even when faced with incomplete or ambiguous information.The balance between personal investment ethos and the structured approach required by funds highlights the complexity and art form of early-stage investing.Notable Quotes:"It's a process...an invitation to iterate your way to a successful process and continue to measure yourself." - Maxine Minter"The nature of especially early stage investing is that it's risky." - Maxine Minter"For me, it's founder... I need to feel like this is the right founder for the...market problem space." - Cheryl Mack"It's really rare, if ever, that you get to a...definitely yes...always no questions." - Maxine Minter"The spectrum of yes to hell yes...there are so many different ways of doing it and so many different timescales to be considering on." - Maxine MinterThanks to our sponsors for helping to make this episode of First Cheque possible:Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
Turo: Turo is the world's largest carsharing marketplace and it's the perfect app for travel. Download the Turo app and book cars from $38/day Download the Turo app and book cars from $38/day. https://dayone.fm/turo
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Episode Summary:
In this insight-packed episode, Cheryl Mack and Maxine Minter sit down with Michael Batko, the driving force behind Startmate, to explore the intricacies of early stage investing and the power of community in the startup realm. Batko shares his journey, starting from his first investment to steering one of the most active seed stage investing funds in the industry. This episode offers a behind-the-scenes look at how Batko and his world-class team utilize a community-driven approach to identify, select, and uplift transformative business ideas across Australia and New Zealand.
Diving into the Startmate selection process, Batko reveals the operational complexities of coordinating a vast network of mentors and how their personal investment in the fund aligns interests and boosts engagement. The conversation also uncovers the evolution of Startmate's investment thesis, its expansion into diverse industries, and Batko's approach to encouraging non-consensus thinking to unlock extraordinary potential. The episode delves into the significance of carry in VC funds, the strategic role of a continuity fund, and the decision-making framework for follow-on investments, all while reflecting on Batko's philosophy of betting on the hungry rather than the proven.
Michael Batko began his career in corporate finance and consulting before contributing to the growth of two major Australian marketplaces, MadPaws and also played a pivotal role in Expert360's $14 million Series B funding round. After joining as Head of Operations, Batko quickly became CEO of Startmate which is now ANZ’s largest community driven seed fund raising ~$3 million from 100+ investors every 6 months.
Key Takeaways:Startmate's success is rooted in a mentor-driven model, where community engagement and personal investment are key to its decision-making process.Batko emphasizes the importance of looking beyond what's probable and considering what's possible when evaluating investment opportunities.The alignment of mentor incentives with fund performance, through carry, is highlighted as a significant motivational factor.A robust debate around investment thesis expansion led to backing diverse ventures, including non-software startups like non-alcoholic beer brand Heaps Normal.The establishment of a continuity fund at Startmate allows for continuous support of alumni companies, signaling strong belief in their ongoing success.Notable Quotes:"I remember this entire thread coming up and everybody discussing whether or not we should invest in that non-alcoholic beer company. And it was at that time when I jumped in as start mate CEO and actually had to be like, 'Hey, we can't just rest on our laurels and do things the way we've always done them.'""We've expanded the investment thesis a lot around, essentially always doubling down on people and what they care about.""One of my favorite questions is, and I always keep coming back to it whenever I critically assess a company for myself, is rather than what is probable... what is possible?""One thing I love about being a microfund is that we only invest $120,000 into companies, but at that stage, it actually makes such a massive difference."Resources:Startmate website for more insights into their accelerator programs. StartmateMichael Batko's professional background and contributions, visit LinkedInDiscussion of eucalyptus's ESOP primer and equity importance. EucalyptusEncouraging all curious investors and founders to tune in and glean actionable insights from Michael Batko's valuable experiences in this episode, as well as to keep an ear out for more enriching discussions in the upcoming sessions.
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Episode Summary:
In this insightful conversation, co-hosts Cheryl Mack and Maxine Minter unpack the often misunderstood world of 'fund of funds'—investment vehicles that pool capital to invest in a variety of venture funds rather than in startups directly. Tailored for early-stage investors and industry observers, this talk reveals the nuances of fund structures and investment strategies designed to mitigate risk and maximize returns.
Diving into a no-nonsense explanation, Maxine elucidates the two foundational structures of venture funds—management companies and the standalone investing funds—and how funds of funds play into this ecosystem by investing in multiple funds. This episode shines a spotlight on the intricacies of fund growth, managerial sophistication, and the dynamic relationship between funds, funds of funds, and their limited partners (LPs). Cheryl probes into the motivations behind why LPs choose to invest in fund of funds, including access to top-tier funds and diversification that extends across emerging ventures.
Key Takeaways:A 'fund of funds' is an investment strategy where the fund invests in other venture capital funds rather than directly in companies.Most venture funds fail to return capital; however, emerging managers often are part of the top-performing funds, despite potential difficulty in scaling from one fund to the next.Institutions like pension and super funds, which frequently invest in funds of funds, face unique challenges such as VP clauses and monthly asset pricing pressures.Funds of funds can offer investors a lower-risk profile and a more diversified exposure to the venture capital market.There is a potential growth opportunity for fund-of-funds in Australia, which is currently a nascent market in this space.Notable Quotes:"If you invest alongside, say, CoVentures, and CoVentures has a fund of fund that's invested in them, what does that mean for the potential success of the company later on down the road?" - Cheryl Mack"Venture funds being an indexation of the underlying assets... Our success is driven by, you know, an outlier in our portfolio." - Maxine Minter"Emerging managers consistently are in the top ten performing funds of every single vintage." - Maxine Minter"The venture funds themselves, their returns perform on a power law curve. So there's only a handful of funds, venture funds, that will deliver outlier returns to their investors." - Maxine MinterSponsors:Thanks to our sponsors for helping to make this episode of First Cheque possible.
Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
Turo: Turo is the world's largest carsharing marketplace and it's the perfect app for travel.
Download the Turo app and book cars from $38/day. https://dayone.fm/turo
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Episode Summary:
In this insightful episode of First Cheque, hosts Cheryl Mack and Maxine Minter have a raw conversation with Elicia McDonald, a venture capital expert renowned for her remarkable work at Airtree Ventures. Elicia's holistic approach to early-stage investing and her deep commitment to nurturing founder relationships are at the forefront of this discussion.
Opening with an introduction that paints Elicia as a superhuman in her work-life balance, the episode delves into the intricacies of venture capital investing. With Elicia's insightful anecdotes and experiences, this podcast provides an intimate look at the dynamics of the VC world, particularly in uncovering what makes an early-stage investor successful. The conversation spans various subjects, including the principles of investment, fostering resilience, and the importance of embracing constant industry change.
About the Guest(s):Elicia McDonald is a prominent figure in the venture capital industry, mainly known for her work at Airtree Ventures, where she has made a significant impact through her skills in early-stage investing. Elicia is known for her keen ability to identify and invest in promising startups, contributing to various successful ventures. Regrow (formerly known as Fluorosat) is among her notable investments, reflecting her knack for spotting early potential in innovative companies. Besides her professional achievements, Elicia is recognised for her leadership in balancing family life with a demanding career, setting an empowering example for professionals, especially women in the tech industry.
Key Takeaways:Resilience and founder empathy are vital traits Elicia values in herself and the founders she invests in. Thorough decision-making and maintaining high-quality standards are pivotal points in Elicia's approach to investing and entrepreneurship. Building trusted relationships within the startup ecosystem significantly contributes to successful sourcing and working with founders. Parenthood and career balance is a personal challenge that Elicia navigated with bravery, setting a progressive example for others in the industry. The venture capital industry is marked by constant change, and embracing this dynamism is crucial for long-term success.Notable Quotes:"Life is 10% what happens to your 90% how you respond to it." - Reflexive insight on the importance of perspective. "Everything is a multi-shot game." - Maxine Minter on the long-term nature of venture investing.Resources:Elicia McDonald's LinkedIn profile Airtree Ventures website for more information on Elicia's investment firm.Listen in to this enlightening episode to hear Elicia McDonald's full insights on venture capital, founder relationships, and building resilience amid industry fluctuations. Stay tuned to First Cheque for more captivating discussions with leading figures shaping the tech and investment world.
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Episode Summary:
In the latest compelling episode, we delve into the investment philosophy and keen insights of Trang Nguyen, a trailblazing figure in venture capital. Nguyen shares her journey from placing an early bet on Tesla to her current efforts in redefining the startup ecosystem. She outlines her criteria for backing emerging fund managers and underscores the importance of founders who aim to build venture firms that transcend personal branding and leave a lasting impression.
Nguyen advocates for a platform approach where venture firms offer scalable services to startups, akin to corporate giants like Apple or Amazon. She argues this is crucial for a venture firm's sustainability and ability to scale, detailing why simply being a good investor isn't always enough. Moreover, Nguyen provides a peek into the future of startups, highlighting the potential for AI to revolutionize the way companies are founded and grown.
Hosted by Cheryl Mack & Maxine Minter, First Cheque is a Day One show. Day One is the podcast network dedicated to founders, investors, and operators.
About the Guest(s):Trang Nguyen is a pioneering investor with a bold approach to venture capital. She has made notable investments in transformative companies, including an early investment in Tesla. Trang is known for her long-term vision and commitment to supporting ambitious entrepreneurs in creating impactful venture firms and startups. Her work revolves around the principles of venture as a future-facing and influential asset class, embracing the role of technology in shaping investment paradigms.
Key Takeaways:Trang Nguyen made a pivotal early investment in Tesla, signifying her long-term investment mindset and dedication to visionary founders.Nguyen emphasizes the necessity for venture capital firms to build platforms that deliver scalable services to startups, not just make investments.The future startup landscape, according to Nguyen, will be heavily influenced by AI, possibly becoming co-founders alongside human entrepreneurs.Nguyen believes venture capital is deeply intertwined with technology and will continue to be a critical asset class for the foreseeable future.Despite current market sentiments, Nguyen is bullish on venture capital and its role in driving innovation across all sectors.Notable Quotes:"Venture is in every single asset class.""In order to identify the future of venture capital, ... you just need to go and look really stupid in front of a lot of people for a long period of time.""Everything you do is venture. It's just whether you recognize it."Thanks to our sponsors for helping to make this episode of First Cheque possible:Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
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Episode Summary:
In this enlightening episode of the podcast, co-hosts Cheryl Mack and Maxine Minter engage with venture capital veteran Craig Blair to unpack the intricacies of successful early-stage investing. From sage wisdom to navigating the ever-evolving VC landscape, this conversation is a trove of insights for aspiring and seasoned investors alike.
Craig discusses his journey starting from an entrepreneurial venture in the Czech Republic to establishing AirTree Ventures, which has shaped the Australian investment scene. With a particular emphasis on strategic risk-taking and intuition in investment, the episode dissects the balance between data-driven decision-making and the human element in evaluating startups. Craig also shares his pivotal ‘big cajones’ moment—a personal story of bravery and recovery.
About the Guest(s):Craig Blair is a seasoned venture capitalist with an entrepreneurial background and a track record of successful investments in the tech industry. With a career spanning over two decades, Craig has become a distinguished figure in the VC market since 2002. He co-founded AirTree Ventures, a leading Australian venture capital fund dedicated to investing in visionary technology entrepreneurs. With his expertise, Craig has developed a reputation for making strategic and often contrarian investment decisions that have significantly impacted the Australian ecosystem. His risk-taking prowess isn't limited to investments though; he's also known for engaging in adventurous activities such as ocean sailing.
Key Takeaways:A founding partner of AirTree Ventures, Craig Blair emphasizes the importance of being contrarian in investment decisions.The discussion reveals the significance of developing investment theses and being prepared with better information about verticals or opportunities.Avoiding the herd mentality and challenging personal biases are vital for successful VC investments, underscoring the need for continuous learning.Craig shares a personal anecdote of tenacity, underlining the importance of dedication and resilience in the face of adversity.Discipline surrounding fund size and alignment with LPs helps maintain investment theses, ensuring the sustainability of both venture funds and startups.Notable Quotes:"If everyone in VC, for example, is going into something right now, I don't want to be there. I want to be somewhere outside that.""It's a humbling experience to see a company and be like, oh, it's not going to work for these reasons, or it hasn't worked in the past, and therefore it's not going to work again in the future, and then it really works in the future.""It's very dangerous if you start morphing your investment plan to suit your LPs.""You might not work before, but why would it work now?""I've done a lot of adventurous things. I do a lot in my previous...well, probably still do a lot of crazy stuff. I love risk."Thanks to our sponsors for helping to make this episode of First Cheque possible:Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
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Summary:
In this insightful episode of the podcast, listeners are introduced to the world of venture capital through the lens of Sam Wong, a seasoned Partner at Blackbird Ventures. Delving into her journey from the early investments to scaling venture funds across markets, this conversation provides an intimate look at what it means to both contribute to and grow within a startup ecosystem. Sam shares her experiences in identifying alpha opportunities, scaling venture fund operations, and the unique challenges and triumphs found in burgeoning markets like New Zealand.
As the podcast unfolds, Sam recalls her first investment and the lessons learned from its considerable return, offering a gateway to discussions on angel investing, ecosystem building, and the dedication needed to manage venture funds successfully. She provides a clearer understanding of the nuanced journey from fund one to the subsequent funds, highlighting the responsibilities of fund managers to their LPs and the critical considerations leading up to successful fund raises. This episode is not just about past decisions but also the leveraging of opportunities, strategizing for long-term outcomes, and the bold moves that define a venture capital career.
Key Takeaways:The transition from angel investing to venture capital management involves long-term commitment and strategic relationship building with founders and LPs.The phenomenon of market asymmetry can provide disproportionate access to quality deals, creating opportunities for generating alpha in venture capital investments.Scaling a venture fund from one iteration to the next requires more than historical performance; it necessitates team growth, market positioning, and an alignment with LP expectations.Early-stage ecosystems, like New Zealand's, possess unique characteristics such as strong vertical SaaS and deep tech capabilities, influenced by successful local companies and founder backgrounds.Personal conviction and the ability to take calculated risks, as demonstrated by Sam's decision to relocate and spearhead Blackbird's New Zealand fund, are essential traits for success in venture capital.Notable Quotes:"I think that [small checks] are actually more about the relationship. And can a founder be bothered giving you a line on their cap table when the money doesn't even cover a week of Runway?" - Sam Wong"You can't just profit from the ecosystem, you have to take responsibility for building it too, and building it in a certain way." - Sam Wong"That asymmetry of capital supply to founder talent is what creates alpha opportunities, right? And you just don't get many of those in a venture lifetime." - Sam Wong"It didn't really take very long before I only grew in conviction that there was a sort of Australia 2013 esque opportunity where you had...a real scarcity of quality options for capital" - Sam Wong"I think starting New Zealand has probably been the biggest, big cojones thing because I felt it at the time too. It did feel very risky at the time." - Sam WongOur SupportersThanks to our sponsors for helping to make this episode of First Cheque possible.
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Summary
In this episode, Maxine Minter and Cheryl Mack discuss their journeys into angel investing and share valuable insights for aspiring investors. They highlight the importance of community and learning in the early stages of angel investing and provide guidance on different investment strategies. Maxine and Cheryl also emphasize the need for diversity in the investor landscape and discuss the changing dynamics of the startup ecosystem. They address common misconceptions about angel investing and offer practical advice for those looking to get started in the field.
Key topics discussed in this episode include the different paths to angel investing, the role of education and community in learning about investing, the significance of diversity in the investor landscape, and the challenges and rewards of angel investing.
Key TakeawaysAngel investing can be approached through various paths, including direct investments, syndicates, and investing in funds. Each approach offers unique benefits and learning opportunities.Building a strong community of fellow investors is crucial for learning and making informed investment decisions. Angel groups and syndicates provide valuable platforms for collaboration and knowledge sharing.Diversity in the investor landscape is essential for supporting underrepresented founders and driving innovation. Investors should actively seek out opportunities to invest in diverse founders and contribute to a more inclusive startup ecosystem.Angel investing requires a willingness to take risks and a long-term perspective. It is important to be prepared for potential losses and understand that returns may take time to materialize.Continuous learning and staying informed about the latest trends and developments in the startup ecosystem are key to becoming a successful angel investor.Quotes"There is nothing more powerful than being the 'dumbest' person in the room. Give yourself permission to ask all the 'stupid' questions and learn as much as possible." - Maxine Minter"Investing in startups is a riskier asset class, and it's important to have a stomach for potential losses. But it also offers the potential for outsized returns and the opportunity to support innovative companies." - Cheryl MackResourcesThe Council: An organisation mentioned by Maxine Minter, formed by a group of friends from a coworking space who started an angel investing group. It has scaled into a larger organisation now.Zeta: The first company Maxine Minter invested in. It’s led by a founder named Aditi.Aussie Angels: Mentioned as a platform for angel investing in various identity groups.University Programs on Angel Investing:UQ (University of Queensland) has an angel investing program.UNSW (University of New South Wales) offers an angel investor course.Wade Institute runs the VC Catalyst course.Southern Angels in SA (South Australia) is reportedly working with the University of South Australia on a similar program.First Believers and Explorers Program: Both Cheryl Mack and Maxine Minter mention participating in this program. -
Summary
Anabel Lippincott Paksoy, partner at 43, discusses the importance of building communities and their role in early-stage investing.
She shares her experience creating the council, a female-first investing group, and emphasises the need for a deep understanding of founders and their motivations.
Anabel also highlights the value of professionalising angel investing and finding founders with a strong sense of purpose and followership.
She concludes by discussing her investment preferences, focusing on niche communities and founders with a deep understanding of unsexy problems.
About The GuestAnabel Lippincott Paksoy is a partner at 43, a pre-seed fund based in the Bay Area. She is also a partner at The Council, a female-first investing group. Anabel has a background in people operations and has a passion for building communities and supporting early-stage founders.
Key TakeawaysBuilding a community is about creating a space for like-minded individuals to connect and share deal flow.Investing in early-stage startups is a high-risk asset class and should not be undertaken unless one is aware of the risks and willing to lose the money.Angel investing can be treated as a learning budget, focusing on maximising learning and gaining experience rather than making immediate financial gains.When evaluating founders, looking for a deep, authentic “why” behind their venture and a strong sense of purpose is essential.The ability to pivot and adapt is crucial for founders, as it demonstrates a willingness to learn and iterate based on feedback and market conditions.Successful founders' ability to attract top talent and inspire followership is a crucial trait.Quotes“I think the thing that I needed, and again, it’s interesting how trends have shifted, too. Even in 2018, five years ago, it was a little new for operators. These female operators were not already super independently wealthy, to think about deploying capital as independent investors into startups.” - Anabel Lippincott Paksoy.“I think the thing that I know that I look for in people is some kind of deep, deep, deep, deep why that they’re doing what they’re doing.” - Anabel Lippincott Paksoy.“I want to feel that conviction, and there’s no way to vet that. That’s where it gets super personal. I want to ask, could I fall in love with this founder, and I don’t mean romantically? I mean, would I go work for them?” - Anabel Lippincott PaksoyResourcesAnabel Lippincott Paksoy43The CouncilThe AssemblyTimestamps0:00:00 - Introduction to the podcast and guest.
0:01:57 - Discussion about Anabel’s first investment.
0:05:04 - Conversation about nostalgia and fashion trends.
0:06:12 - Exploring the concept of building communities.
0:09:48 - Challenges and principles of community design.
0:10:30 - Constructing a community for sharing investment deals.
0:11:55 - Creating a learning platform through a consortium of investors.
0:13:14 - Frustration with lack of conversation about deals in the peer group.
0:15:15 - Directing new angel investors to be aware of high risk.
0:17:31 - Treating angel investing as a learning budget.
0:18:48 - Normalising lower entry prices for angel investing in Australia.
0:19:24 - Contributing to the founder’s
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Summary
Cheryl Mack and Maxine Minter reflect on the year 2023 and discuss the challenges and trends in the startup ecosystem. They talk about the tough environment for founders and investors, with many companies struggling to raise funds and facing down rounds. However, they also highlight the resilience and determination of founders who were able to survive and even thrive in the face of adversity.
The hosts discuss the increase in funding for female founders, although there is still a long way to go in achieving gender parity in the industry. They also touch on the growth of climate tech and AI as key areas of investment, with these sectors propping up the funding ecosystem.
Cheryl and Maxine express cautious optimism for the year 2024, noting the need for continued creativity and resilience in the face of challenges. They also highlight the importance of addressing issues of behaviour and inclusivity in the startup ecosystem.
Key TakeawaysChallenges in the Startup Ecosystem (2023): The year was marked by difficulties for many companies in raising funds, with instances of down rounds reflecting a challenging environment for the startup ecosystem.Resilience of Founders: Success in these tough times was often attributed to the resilience and determination of founders, who demonstrated the ability to navigate through the demanding market conditions effectively.Funding for Female Founders: While there was a notable increase in funding for female founders, reaching a historical high, the conversation acknowledges that more efforts are necessary to achieve gender parity in funding.Growth of Climate Tech and AI: Both climate tech and AI emerged as standout sectors, drawing significant investments and spearheading innovation despite the broader economic challenges.Outlook for 2024: The year ahead is approached with cautious optimism. The emphasis is on the necessity for ongoing creativity and resilience to address and overcome upcoming challenges.Quotes- "I think ingenuity was a real theme. I'm excited to dive in today, obviously. Tis the season to be reflecting." - Cheryl Mack
- "The founders that survive this are the ones that we are so excited to back as investors." - Maxine Minter
- "I think optimism and holding on to a sense of optimism won this year. Pairing it with creativity, also really effective." - Maxine Minter
- "I think 2024 is looking cautiously optimistic. Cautiously optimistic." - Maxine Minter
Chapters00:05 - Introduction to the podcast
00:25 - Reflecting on the year and the challenges faced
02:02 - Difficulty of raising funds and the resilience of founders
04:32 - Founders' determination to survive and adapt
05:08 - Employment Hero becoming a unicorn
06:31 - Tentative re-entry of international investors into the Australian ecosystem
07:38 - Gap between top founders and average deals narrowing
08:49 - Overpaying in the early stages of funding
09:05 - Australian tech facing criticism from the media
10:46 - Turning point in sentiment with SVB collapse and Milk Run
11:18 - Discussion about the impact of FTX and Sam Bankman-Fried's sentencing
12:13 - AI and climate tech propping up the funding industry in 2023
13:56 - AI adoption curve and its impact on the legal tech industry
15:01 - Tight capital environment in Q1 and Q2 of 2023
15:32 - Increase in interest and funding for climate tech
17:10 - Rise of climate tech-focused funds in Australia
18:19 - Lack of AI-focused funds in Australia
20:06 - Creativity in funding and rise of professionalized fund management
21:30 - Optimism about more fund raising in 2024
21:52 - Increase in funding for female founders, but still low overall
22:33 - Matching population demographics
22:48 - Lack of data on women-led...
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