Sydney-based corporate accelerator Slingshot has acquired AngelCube, Melbourne’s first startup accelerator, and announced plans to inject $10 million into the local ecosystem.
Founded three years ago, Slingshot runs programs connecting high-growth startups with the growth agenda of larger corporates.
AngelCube has been running for nearly five years and has invested in more than 20 startups. Through its three-month program, the accelerator contributes $40,000 in seed funding to all participants.
With the acquisition, Slingshot will now operate through AngelCube’s existing networks and mentors, running “at least three” programs in Melbourne, with minimum investments of $150,000 for each startup.
It’s the first step in Slingshot’s national expansion plans, co-founder Craig Lambert says.
“We wanted to have a bigger footprint in the startup ecosystem and looked to existing programs that we could partner with,” Lambert tells StartupSmart.
“AngelCube has a long and rich history with great networks, a really strong reputation and the existing infrastructure. We’ll inherit all of that.
“Startups will have access to mentors, investors and deep relationships with the Melbourne ecosystem.”
Lambert says he has known AngelCube founders Nathan Sampimon and Adrian Stone since he first started Slingshot.
“We really liked them straight off the bat,” he says.
“We’ve had a relationship for a long period of time.”
The AngelCube co-founders will remain involved with the group, assisting with its strategic direction and acting as mentors for program participants.
“We’re so proud of everything AngelCube has achieved since launching in 2010,” Sampimon says.
“We have accelerated 32 startups and raised over $20 million. With the support of Slingshot, startups will now have access to increased funds and the expertise of their network of corporate partners.”
Not content with the expansion to Melbourne, Lambert says the “next logical step” is a move into Queensland, while a presence internationally is in the groups’ long term plans.
“We want as broad a spread as possible to service tier one corporations and capture high potential startups,” he says.
“We’re not closed to just Melbourne, Sydney and Queensland, we’re very open to growing our business even beyond Australia.”
Slingshot’s Melbourne operations will run out of the Inspire9 co-working space and the group is looking to expand its team in the city.
“We always invest in great people and we’re looking for more high-quality people to join,” Lambert says.