Perth-based startup incubator and accelerator, Atomic Sky, recently announced that is has raised a second round of financing from a high profile local investor. Andy Lamb, Co-Founder of Atomic Sky, told Startup Daily that it was a “significant six-figure sum”, but remained tight lipped about who the investor is for the time being.
The funding comes six months after Atomic Sky opened its Tech Hub, and will be used to support its plans to increase and scale its investments in Perth-based technology startups.
Lamb laments the perception that “no-one invests in tech startups in Perth – [that Perth] is all about mining.” By attracting a prominent investor, which Lamb describes as “almost a match made in heaven”, Atomic Sky is not only able to help debunk this perception, but also allows Atomic Sky to triple its investment opportunities over the next 12 months and bring Perth’s startup community into the spotlight.
“There has been strong investor interest in what we’re doing at Atomic Sky and it is fantastic confirmation that the model we’ve built to help startups and organisations develop their ideas is working,” says Lamb.
“The startup scene in Perth is really gaining traction, and being able to increase our level of investment in this space will only generate more momentum”.
Atomic Sky established itself in December 2012 and provides the Perth startup community with a mixture of cash, code, commercialisation and co-working space. The market value of Atomic Sky is currently between $1 million and $2 million, according to Lamb.
The accelerator currently has nine projects underway. Four of these startups have been invested in, whilst the rest are receiving mentoring or consulting around software development.
The latest round of funding will allow Atomic Sky to make equity investments in businesses every two months. At the same time, Atomic Sky will be engaging in businesses that don’t want to give away equity – which Lamb describes is going to be “more a paid nuclear fusion opportunity”.
He explains that it will be similar to what they did with Perth-based video production service, Video Cha Cha. Although Atomic Sky kept secret the exact financial amount being invested in Video Cha Cha, Startup Daily was able to confirm that the investment was a combination of ongoing capital, physical space and strategic assistance in scaling the venture.
“We’ll invest in those businesses which will then provide services back to Atomic Sky, but they will be standalone businesses in their own right,” says Lamb.
“But to do that, we need more people in the business, so we’re going to be advertising for startup advisors.”
The latest investment will also be used to broaden the scope of services that Atomic Sky will offer under its brand. Lamb says that they’re looking to expand into other industries – including mining tech and agriculture. This is not only to achieve congruency with Atomic Sky’s Perth location, but also because of the background and networks of its new investor.
Lamb also revealed Atomic Sky’s plans to launch an e-learning platform in the first quarter of 2015 that will teach startups how to pitch, grow their business and define their go-to-market strategy, among other relevant topics.