Episode Summary:

In this special replay of our most popular episode of the year, Cheryl and Maxine sit down with Michael Batko, CEO of Startmate, to explore the transformative power of early-stage investing and community-driven entrepreneurship. From hardware startups to non-alcoholic beer companies, Batko shares how Startmate pushes boundaries, backs ambitious founders, and builds a thriving startup ecosystem in Australia and New Zealand. Discover how Startmate evolved from software-focused investments to a diversified portfolio across industries, leveraging the collective power of mentors and founders. Gain practical insights into crafting investment theses, fostering innovation, and redefining venture capital through collaboration and bold thinking. Whether you’re revisiting this conversation or tuning in for the first time, get ready for plenty of actionable advice and behind-the-scenes stories that shaped one of our most downloaded episodes of 2024. Enjoy the replay!

Time Stamps

00:00 Introduction and background on Michael Batko and Startmate.

02:36 Startmate’s investment thesis and evolution into hardware and non-traditional startups.

07:59 The role of community and mentors in early-stage investing.

14:19 Insights into the Continuity Fund and its benefits for alumni companies.

23:09 The importance of equity and carry in the Australian startup ecosystem.

34:09 Startmate’s unique approach to portfolio construction and decision-making.

42:07 Lessons learned from non-consensus investments like Heaps Normal.

48:36 Michael Batko’s "Big Cojones" moment and reflections on bold decisions.

Notable Quotes:

1. "It’s not about what’s probable; it’s about what’s possible." – Michael Batko

2. "Backing the hungry, not the proven, is at the heart of what we do." – Michael Batko

3. "Would you want to work for this founder? That question reveals everything." – Michael Batko

4. "The biggest mistake in VC isn’t losing money—it’s missing the one company that could be massive." – Michael Batko

5. "Startmate is built on two core principles: giving the community a job and skin in the game." – Michael Batko

Resources Mentioned

No-Code Tools:

• Airtable

• Notion

• Softr

• Pory

Heaps Normal

Eucalyptus – Guide to Employee Share Options (ESOP)

Cake Equity – Equity and ESOP Calculator

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