Tank Stream Ventures raising $20 million fund to invest in over 30 start-ups
Tuesday, October 22, 2013/
Sydney-based investment fund Tank Stream Ventures is halfway through raising a $20 million fund and has already invested in three start-ups.
Investment manager Rui Rodrigues told StartupSmart they’ve locked in just under half of the fund and have invested some of the committed capital in three start-ups this year: taxi booking app goCatch, social network Spring.me and receipt and accounting app Pocketbook.
The fund is being raised from a range of sources, including high net worth individuals and institutions.
“There are still difficulties in raising venture capital from institutions, as they’re not used to high risk investments like start-up,” Rodrigues says.
“But many high net worth individuals are looking to shift part of their investments from traditional sectors such as mining and don’t necessarily understand technology to a point they could make their own investments so the fund lets them access this high growth sector.”
Tank Stream Ventures will be looking to invest between $200,000 to just under $1 million in 30 to 40 start-ups. Rodrigues says while their equity stake will vary, it’ll be around 5% to 12%.
“We’re not after large or controlling stakes. We want the entrepreneur to be able to run their business how they want,” Rodrigues says.
Rodrigues says they’re hoping to develop a diverse portfolio of online technology start-ups, including e-commerce, collaborative consumption, software-as-a-service and cloud-based start-ups.
“We’re looking for companies that will develop locally but scale globally. Australia is a terrific market to test new ideas and technology,” Rodrigues says.
“If we’re impressed by the team, that’s a good start. A track record in starting companies makes them even better.”