Hi Renai
Thanks for the write up :)
I was trying to find another early stage VC-fund investment in IT in
the past 6 months and found it very difficult.
VC funding is not particularly sought after by typical web-based start-
ups these days for two key reasons:
1. I look to invest $1.0 - 3.0m in a Series A round, most start-ups
these days can get to cashflow positive on a lot less and that's where
the average entrepreneur is happy to either stop thinking about extra
capital ("I am cashflow positive already") or start believing in
valuations that would mean my $1-3m would not give me any substantial
stake in the business.
2. Our terms are very very tough compared to family and friends or
private equity or just about any other form of investment money. We
ensure very strong downside protection, which frankly is very off-
putting for many entrepreneurs
Read VentureHacks to get an idea where VC sits in the cycle, you can
get a lot from Angels if you can find them, but a VC is mean to help
propel a business to the next level and should bring a lot more than
cash. I have sat on both sides of the table, I don;t pretend for an
instant that I can bring the networks or skills of the average Silicon
Valley VC but from little ol' Perth I can certainly help a business go
international for the first time.
Agworld was an exception opportunity for us, great management, an
understanding of the value of VC and some great early traction with
customers built on the back of some serious sweat and real cash from
the founders. Hats off to them for seeing where Yuuwa could fit in
and giving us a chance
Matt
Co-founder
Yuuwa Capital LP
On Sep 13, 8:42 am, Renai LeMay <rle...@gmail.com> wrote:
> Innovation Bay is constantly calling for people to come and pitch to
> them, and now this drops out of the 'sky' -- or should that be the
> 'Yuuwa'? ;)
>
> Perth VC pumps $1.5m into agriculture IT
> startuphttp://delimiter.com.au/2010/09/13/perth-vc-pumps-1-5m-into-agricultu...
>
> I am beginning to suspect that the whinging about a lack of VC capital
> in Australia is just that ... whinging.
>
> Thoughts?
>
> Renai
> Publisher, Delimiter
>
> PS I am heading to the next Innovation Bay dinner -- will be
> interesting to see what the sentiment is on the issue there.
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