Experienced angel investors Rachael Neumann and Kylie Frazer have launched Flying Fox Ventures, offering a new model of investment syndicate in Australia, and deploying $5 million into early-stage startups each year.
Neumann is the founder of Working Theory Angels, as well as being a former chair of StartupAus, a managing director of Eventbrite and head of startups for Australia and New Zealand at AWS.
Frazer is a co-founder and partner of Eleanor Ventures, and a startup advisor, Startmate mentor and lawyer.
The pair have already clubbed together to deploy some $10 million of funds under management into between 20 and 30 deals, including backing the likes of Goterra, Mr Yum, Heaps Normal and Josef.
Now, Flying Fox will bring together a cohort of angel investors, each pre-committing $50,000 to the fund. That cash is then pooled and deployed across ten deals.
For startups, it offers transparency into the size of cheque they can expect from the syndicate. For the investors, it means a diverse and well-balanced portfolio, increasing their chances of great returns.
The idea is to increase the number of people investing in early-stage startups, Neumann explains.
Firstly, that’s “mission critical from an ecosystem perspective,” she says. But it’s also where investors can get the best returns.
And, perhaps most importantly, “it’s just the most fun place to play”, she explains.
“It’s an opportunity find people early in their journey when they’re super passionate, and really lean in to help them realise their success.”
An alternative model
The fund takes inspiration from the ‘rolling fund’ model that is gaining popularity in the US, Neumann explains.
Each year, a $5 million pool of capital will be replenished and deployed, and investors can choose to join each round, or sit out.
In typical funds, limited partners are invited in once every
This story was published at WomensAgenda.com.au- Business and provided for your interest.