Atlas Digital’s Post

I've been reflecting on the last couple of months of capital raises across New Zealand and Australia. Almost all of them feature a US-based VC on the cap table. Why? One of the reasons is our capital efficiency. Our small, elite teams can do so much with so little. Scott Dommett from Rampersand explains the advantage Aussie and Kiwi startups have over the US 👉 "Here's a million dollars, oh, you've turned it into a million dollars revenue." Punching above our weight dollar for dollar is a massive advantage. Imagine what we could do if we lifted our average round size 💪

Do you know that more than half of the VC startup capital in Australia, comes from the United States? I expected it. What I did not expect is that Australia is an outlier. It is one of the few places where the local capital is lower than foreign investments. This is according to Mind the Bridge's latest report from today's Scaleup Summit in Sydney. What could be done to change that?

Peak XV Partners, formerly known as Sequoia India and Southeast Asia, is looking to expand its Australian portfolio — with investments of up to US$50 million. Speaking at SXSW Sydney this week, Peak XV managing director Abheek Anand said Australia would play a crucial part in the form's goal of building a global VC out of Asia. “It’s a market that is large enough that there’s enough engineers out there that are trying to figure out what the big global problems are,” he said, “but not large enough that people just want to build an Australia-only business.” That means opportunity for Australia’s startup sector: PeakXV’s investments range from US$500,000 early-stage punts to US$50 million bets on more mature outfits. Read the full story 👉 https://lnkd.in/gMBwmQe4

The next great VCs in Latin America are being founded today. If this is the best time to invest in startups, it’s also the best time to launch a new VC firm. Unlike the easy money of 2020-2021, today’s climate demands grit and ingenuity. To make things harder, everyone is raising in Latin America, from established firms to emerging GPs. Back then, it was easier to raise a first fund but also, a terrible time to deploy capital. Today, if you can bring a fresh perspective, assemble a stellar team, and raise $5-10M, this is your moment. Excited to co-invest with these bold VC founders!

Check out my video on Inhouse Ventures!! Covering all things raise strategy to leverage your time as a founder and avoid pitfalls we've seen over the years.

During the earlier stages of a startup or a new venture, there is no particular identity that can be tied to it. The company’s entire identity base is made up of the personalities and ideas of the founders and organizational team. Mujir A. Muneeruddin, J.D., LL.M., a seasoned investor and partner of Pallett Valo LLP, highlighted that investing in early-stage startups is not investing in the company but rather in the individuals operating it. He highlighted the importance of dedication, accountability, and leadership in the founders of a new company to ensure its success and ability to navigate adversity and difficult challenges. Read more about the critical components of angel investing in our discussion with Mujir A. Muneeruddin, J.D., LL.M. here: https://hubs.ly/Q02C4Vjy0

After collaborating with numerous angel investors and family offices in MENA, I've noticed a trend where some less experienced investors aim for large ownership stakes in early-stage startups. This can backfire as it limits the startup's ability to raise future rounds and maintain control, both investors and founders need to understand that balancing early-stage funding with a healthy cap table is crucial for long-term success.

Following the acquisition of BeReal, we’ve spent time thanking the team & partners for all their hard work, but I wanted to drop one last note: When a startup is successful, all the credit goes to the founders & the team; and when a startup crashes, all the laughs go on the investors who backed it. Although it is probably fair in some regards, it’s unclear to me when investors do actually get credit. So just wanted to fix that here,  to Jean, - ⁠who was the first investor in BeReal - who hired for BeReal (me included, recommending me to Alexis, with Antoine and François) - who raised money for BeReal, (introducing Alexis to Sonali at Accel and Bryan at Andreessen -who ended up leading the series A- and Tom at DST -who ended up leading the series B) - ⁠and who -in lack of a better word- “worked at BeReal” for 3 years, providing feedback day/night/ weekends, giving advice, holding us accountable, shaking us when needed, and supporting us when needed Truly, thank you, it doesn’t get better than that. Warren Buffett has a beautiful quote on this: “You look for three qualities in people you hire: integrity, intelligence, and energy. And if you don't have the first, the other two will kill you. If you think about it, it's true: if you hire somebody without integrity, you really want them to be dumb and lazy.” This is probably true for investors too, so thank you Jean for the integrity, the intelligence and the energy, I would not have been at BeReal without you, and BeReal wouldn’t have gotten to where it is without you either. Cheers, Romain

🇦🇺 The State of the Australian VC Market Heading into 2025 📈 🗓 Date: 28th November | ⏰ Time: 12pm-1pm AEDT 🎟 Tickets on sale now! After a challenging few years in the startup funding landscape—with reduced funding rounds and extended runways—we’re beginning to see promising signs of market recovery. Recent boosts in US investment and steady local deals under $50M could signal positive changes on the horizon. Join us along with our expert panel from Aussie Angels, Tractor Ventures, Rampersand, and Five Capital as we share insights into market trends and what investors are watching closely for in the year ahead. We’ll end with a live Q&A, so bring your questions and get the inside track on what to expect in 2025! Don’t miss out—tickets on sale now! #VCMarket #Investment #AusStartups https://hubs.li/Q02XsdTb0

Peter's post provides very important insight. Too many entrepreneurs just think that if they build it the liquidation event is inevitable not realizing you need to build what the buyer will want. There is little to no due diligence regarding what their target audience actually buys. Do your homework early.