[LINK] Local tech-start-up funds

[stephen at melbpc.org.au]

As predicted on Link a week or so ago, here come the
super fund investment monies that need to earn a living.

$200m Fund to Seed Tech Start-ups

Michael Sainsbury
SEPTEMBER 20, 2006 

http://australianit.news.com.au/articles/0,7204,20443327%5E15306%5E%5Enbv%
5E,00.html

TECHNOLOGY start-ups are back in the hunt for capital with private equity 
manager Southern Cross Venture Partners launching a rare local, early-
stage investment fund which it plans to arm with $200 million by the 
year's end.

The fund will focus on technology and clean-energy sectors and is poised 
to make its first investment - in the telco sector - within the next 
week. <snip>

SXVP boasts blue-chip directors, led by technology venture industry 
veteran Bob Christiansen, who was previously a director at tech-
investment specialists Allen and Buckeridge

Also on board is former Macquarie Bank executive Bill Bartee who led 
early-stage investments in online jobs site Seek and one-time internet 
search success Looksmart, and former Uniseed chief executive Gareth 
Dando. Former Apple executive John Scoll is the fund's Silicon Valley-
based director. 

"One thing we have historically done in Australia is raise sub-scale 
funds," Mr Christiansen told The Australian. 

"We were then only able to make sub-scale investments in what then 
remained sub-scale companies." 

The criteria for raising the fund was that it could be a globally 
credible size of at least $US150 million ($200 million), Mr Christiansen 
said. 

SXVP will target investment in early-stage information technology 
projects, telecommunications and advance materials -- polymer plastics 
and nano-technology -- as well as clean energy, where Australia has some 
global presence. 

"What we don't do is pure biotech plays with drug development," Mr 
Christiansen said. 

The fund plans to make investment in each of its projects of between $10 
million and $12 million over the life of the investment. 

"The Australian marketplace is highly attractive for early-stage 
technology investing due to the excellent deal flow and persistent 
shortfall of early-stage venture capital," Mr Christiansen said. 

"The fallout from the tech bust saw investors move towards more 
conservative later-stage investments, but the time is now ripe for early-
stage investing as a new stream of experienced entrepreneurs and 
interesting innovations emerge." 

The Australian 
--

Regards all ..
Stephen Loosley
Melbourne, Australia