Trevor Folsom and Creel Price’s Investible has closed its first early / seed stage venture capital fund of $22 million early stage funding in Australia run by veteran Daniel Veytsblit.
The fund plans to make 40 investments of circa $300k and 7-10 follow on investments of $700k -$1m. This will de risk the investment in startups says Veytsbilt.
To date, the fund has backed 10 companies such as seafood auction platform Manettas Seafood, hotel pricing optimisation platform Hotelmize, tourism attraction big data start-up Dexibit and diversity recruitment company WORK180.
One of the early investors into the new fund was son of Primo Smallgoods rich lister Paul Lederer, Rob Lederer, who has been an angel investor for about five years and has built up a portfolio of 30 investments.
Mr Lederer said the $1.45 billion sale of Primo Smallgoods in 2014 had put him in a position to be an investor.
"All the maths shows to have a decent portfolio you need at least 25 investments.
"Through Investible's “club” fund they'll be able to back 40 start-ups, so by investing in this fund, I should get that diversification, as well as their experience and due diligence. The team have the capability, processes and bandwidth to do the relevant due diligence and ensure that the investments are looked after.
The fund uses 16 criteria to guide its investments, incorporating 250 data points, covering the strength of a start-up's business model plan, pitch, investor deck and the chemistry of the founders.
Hopefully the successes of the fund will be a catalyst for further investments in early stage funding.
By Yolanda Redrup https://www.afr.com/by/yolanda-redrup-j7gdq