News & Analysis

CapitalPitch launching $10 million venture fund to co-invest in startups raising through its platform

- May 31, 2016 2 MIN READ

After hinting at the launch of a fund earlier this year, fintech startup CapitalPitch has today officially launched Capital Pitch Ventures, looking to raise $10 million to co-invest in each startup that successfully raises through its platform.

The startup, founded by Jeremy Liddle, has partnered with Club Investible and Tulla Group, the investment arm of the Maloney Family office, to launch the fund, which will operate as an Early Stage Venture Capital Limited Partnership (ESVCLP) fund and according to criteria that allows for foreign investors to come to Australia through a Significant Investor Visa.

The new fund will put in a minimum of 15 percent towards the raise target for each startup raising through CapitalPitch.

Since launch in January 2015, CapitalPitch now has almost 1,400 startups signed up to its platform, with nine so far raising a combined $13 million.

The CapitalPitch platform looks to help startups become investor ready and then raise. It consists of a six step program, with participating startups screened by CapitalPitch at each step to ensure only the investor-ready proceed to the capital raising.

The program gives startups an indicative valuation, access to a pitch builder, strategic review, takes them through due diligence, and helps secure a lead investor who will commit to 20-35 percent of the raise target ahead of the sixth stage. The final step introduces startups to a number of global syndicates in order to close a round, with the goal of the program also to educate startups on how to raise smart, strategic investment.

Kevin Maloney, founder and chairman of Tulla Group, said “The team at CapitalPitch have built a unique and highly relevant offering that provides real value to investors seeking to reduce the burden of early stage due diligence. Investment funds and family offices in Australia and globally are being approached by an ever growing number of businesses seeking funding.

“CapitalPitch’s platform offers a clever way for investors to be able to outsource a component of the due diligence process.”

Trevor Folsom, cofounder of Club Investible and director of Elevation Capital, added, “Making over 45 angel investments and working as a venture partner across multiple funds for 10 years has taught me that there needs to be a better way to screen and select the best startup deal flow.”

The launch comes after CapitalPitch’s own $600,000 seed round in January, led by Folsom and Aaron Bertinetti.

With the funding the startup brought on board former Gust developer Ryan McGarvey as CTO and Alan Beattie, former deputy CEO of HSBC, as CFO.

It also follows announcements from Aura Group and StartMesh of a $30 million and $20 million venture fund, respectively.

Image: Malcolm Turnbull and Jeremy Liddle. Source: Supplied.