Episode Summary:In this insightful conversation, co-hosts Cheryl Mack and Maxine Minter unpack the often misunderstood world of 'fund of funds'—investment vehicles that pool capital to invest in a variety of venture funds rather than in startups directly. Tailored for early-stage investors and industry observers, this talk reveals the nuances of fund structures and investment strategies designed to mitigate risk and maximize returns.Diving into a no-nonsense explanation, Maxine elucidates the two foundational structures of venture funds—management companies and the standalone investing funds—and how funds of funds play into this ecosystem by investing in multiple funds. This episode shines a spotlight on the intricacies of fund growth, managerial sophistication, and the dynamic relationship between funds, funds of funds, and their limited partners (LPs). Cheryl probes into the motivations behind why LPs choose to invest in fund of funds, including access to top-tier funds and diversification that extends across emerging ventures.Key Takeaways:A 'fund of funds' is an investment strategy where the fund invests in other venture capital funds rather than directly in companies.Most venture funds fail to return capital; however, emerging managers often are part of the top-performing funds, despite potential difficulty in scaling from one fund to the next.Institutions like pension and super funds, which frequently invest in funds of funds, face unique challenges such as VP clauses and monthly asset pricing pressures.Funds of funds can offer investors a lower-risk profile and a more diversified exposure to the venture capital market.There is a potential growth opportunity for fund-of-funds in Australia, which is currently a nascent market in this space.Notable Quotes:"If you invest alongside, say, CoVentures, and CoVentures has a fund of fund that's invested in them, what does that mean for the potential success of the company later on down the road?" - Cheryl Mack"Venture funds being an indexation of the underlying assets... Our success is driven by, you know, an outlier in our portfolio." - Maxine Minter"Emerging managers consistently are in the top ten performing funds of every single vintage." - Maxine Minter"The venture funds themselves, their returns perform on a power law curve. So there's only a handful of funds, venture funds, that will deliver outlier returns to their investors." - Maxine MinterSponsors:Thanks to our sponsors for helping to make this episode of First Cheque possible.Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendarTuro: Turo is the world's largest carsharing marketplace and it's the perfect app for travel.Download the Turo app and book cars from $38/day. https://dayone.fm/turoMentioned in this episode:June 2024 – Vanta First ChequeNovember 2024 - Galah CyberNovember 2024 - Rocking HorseThis podcast uses the following third-party services for analysis: Spotify Ad Analytics - https://www.spotify.com/us/legal/ad-analytics-privacy-policy/

Venture capital expert Elicia McDonald discusses resilience, founder empathy, and successful investment strategies in the VC world. Topics include balancing work-life, developing empathy as a skill, and navigating emotional challenges in venture investing while building authentic relationships with founders.

Trailblazing figure in venture capital, Trang Nguyen, shares insights on investing in ambitious founders and building lasting venture franchises. She delves into the importance of backing emerging fund managers and advocates for a platform approach in venture firms. Nguyen also discusses the future of startups with AI revolutionizing the industry.

Episode Summary:In this enlightening episode of the podcast, co-hosts Cheryl Mack and Maxine Minter engage with venture capital veteran Craig Blair to unpack the intricacies of successful early-stage investing. From sage wisdom to navigating the ever-evolving VC landscape, this conversation is a trove of insights for aspiring and seasoned investors alike.Craig discusses his journey starting from an entrepreneurial venture in the Czech Republic to establishing AirTree Ventures, which has shaped the Australian investment scene. With a particular emphasis on strategic risk-taking and intuition in investment, the episode dissects the balance between data-driven decision-making and the human element in evaluating startups. Craig also shares his pivotal ‘big cajones’ moment—a personal story of bravery and recovery.About the Guest(s):Craig Blair is a seasoned venture capitalist with an entrepreneurial background and a track record of successful investments in the tech industry. With a career spanning over two decades, Craig has become a distinguished figure in the VC market since 2002. He co-founded AirTree Ventures, a leading Australian venture capital fund dedicated to investing in visionary technology entrepreneurs. With his expertise, Craig has developed a reputation for making strategic and often contrarian investment decisions that have significantly impacted the Australian ecosystem. His risk-taking prowess isn't limited to investments though; he's also known for engaging in adventurous activities such as ocean sailing.Key Takeaways:A founding partner of AirTree Ventures, Craig Blair emphasizes the importance of being contrarian in investment decisions.The discussion reveals the significance of developing investment theses and being prepared with better information about verticals or opportunities.Avoiding the herd mentality and challenging personal biases are vital for successful VC investments, underscoring the need for continuous learning.Craig shares a personal anecdote of tenacity, underlining the importance of dedication and resilience in the face of adversity.Discipline surrounding fund size and alignment with LPs helps maintain investment theses, ensuring the sustainability of both venture funds and startups.Notable Quotes:"If everyone in VC, for example, is going into something right now, I don't want to be there. I want to be somewhere outside that.""It's a humbling experience to see a company and be like, oh, it's not going to work for these reasons, or it hasn't worked in the past, and therefore it's not going to work again in the future, and then it really works in the future.""It's very dangerous if you start morphing your investment plan to suit your LPs.""You might not work before, but why would it work now?""I've done a lot of adventurous things. I do a lot in my previous...well, probably still do a lot of crazy stuff. I love risk."Thanks to our sponsors for helping to make this episode of First Cheque possible:Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendarTuro: Turo is the world's largest carsharing marketplace and it's the perfect app for travel. Download the Turo app and book cars from $38/day Download the Turo app and book cars from $38/day. https://dayone.fm/turoMentioned in this episode:November 2024 - Galah CyberNovember 2024 - Rocking HorseJune 2024 – Vanta First ChequeThis podcast uses the following third-party services for analysis: Spotify Ad Analytics - https://www.spotify.com/us/legal/ad-analytics-privacy-policy/

Summary:In this insightful episode of the podcast, listeners are introduced to the world of venture capital through the lens of Sam Wong, a seasoned Partner at Blackbird Ventures. Delving into her journey from the early investments to scaling venture funds across markets, this conversation provides an intimate look at what it means to both contribute to and grow within a startup ecosystem. Sam shares her experiences in identifying alpha opportunities, scaling venture fund operations, and the unique challenges and triumphs found in burgeoning markets like New Zealand.As the podcast unfolds, Sam recalls her first investment and the lessons learned from its considerable return, offering a gateway to discussions on angel investing, ecosystem building, and the dedication needed to manage venture funds successfully. She provides a clearer understanding of the nuanced journey from fund one to the subsequent funds, highlighting the responsibilities of fund managers to their LPs and the critical considerations leading up to successful fund raises. This episode is not just about past decisions but also the leveraging of opportunities, strategizing for long-term outcomes, and the bold moves that define a venture capital career.Key Takeaways:The transition from angel investing to venture capital management involves long-term commitment and strategic relationship building with founders and LPs.The phenomenon of market asymmetry can provide disproportionate access to quality deals, creating opportunities for generating alpha in venture capital investments.Scaling a venture fund from one iteration to the next requires more than historical performance; it necessitates team growth, market positioning, and an alignment with LP expectations.Early-stage ecosystems, like New Zealand's, possess unique characteristics such as strong vertical SaaS and deep tech capabilities, influenced by successful local companies and founder backgrounds.Personal conviction and the ability to take calculated risks, as demonstrated by Sam's decision to relocate and spearhead Blackbird's New Zealand fund, are essential traits for success in venture capital.Notable Quotes:"I think that [small checks] are actually more about the relationship. And can a founder be bothered giving you a line on their cap table when the money doesn't even cover a week of Runway?" - Sam Wong"You can't just profit from the ecosystem, you have to take responsibility for building it too, and building it in a certain way." - Sam Wong"That asymmetry of capital supply to founder talent is what creates alpha opportunities, right? And you just don't get many of those in a venture lifetime." - Sam Wong"It didn't really take very long before I only grew in conviction that there was a sort of Australia 2013 esque opportunity where you had...a real scarcity of quality options for capital" - Sam Wong"I think starting New Zealand has probably been the biggest, big cojones thing because I felt it at the time too. It did feel very risky at the time." - Sam WongOur SupportersThanks to our sponsors for helping to make this episode of First Cheque possible.Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendarTuro: Turo is the world's largest carsharing marketplace and it's the perfect app for travel. Download the Turo app and book cars from $38/day Download the Turo app and book cars from $38/day. https://dayone.fm/turoMentioned in this episode:June 2024 – Vanta First ChequeNovember 2024 - Rocking HorseNovember 2024 - Galah CyberThis podcast uses the following third-party services for analysis: Spotify Ad Analytics - https://www.spotify.com/us/legal/ad-analytics-privacy-policy/

SummaryIn this episode, Maxine Minter and Cheryl Mack discuss their journeys into angel investing and share valuable insights for aspiring investors. They highlight the importance of community and learning in the early stages of angel investing and provide guidance on different investment strategies. Maxine and Cheryl also emphasize the need for diversity in the investor landscape and discuss the changing dynamics of the startup ecosystem. They address common misconceptions about angel investing and offer practical advice for those looking to get started in the field.Key topics discussed in this episode include the different paths to angel investing, the role of education and community in learning about investing, the significance of diversity in the investor landscape, and the challenges and rewards of angel investing.Key TakeawaysAngel investing can be approached through various paths, including direct investments, syndicates, and investing in funds. Each approach offers unique benefits and learning opportunities.Building a strong community of fellow investors is crucial for learning and making informed investment decisions. Angel groups and syndicates provide valuable platforms for collaboration and knowledge sharing.Diversity in the investor landscape is essential for supporting underrepresented founders and driving innovation. Investors should actively seek out opportunities to invest in diverse founders and contribute to a more inclusive startup ecosystem.Angel investing requires a willingness to take risks and a long-term perspective. It is important to be prepared for potential losses and understand that returns may take time to materialize.Continuous learning and staying informed about the latest trends and developments in the startup ecosystem are key to becoming a successful angel investor.Quotes"There is nothing more powerful than being the 'dumbest' person in the room. Give yourself permission to ask all the 'stupid' questions and learn as much as possible." - Maxine Minter"Investing in startups is a riskier asset class, and it's important to have a stomach for potential losses. But it also offers the potential for outsized returns and the opportunity to support innovative companies." - Cheryl MackResourcesThe Council: An organisation mentioned by Maxine Minter, formed by a group of friends from a coworking space who started an angel investing group. It has scaled into a larger organisation now.Zeta: The first company Maxine Minter invested in. It’s led by a founder named Aditi.Aussie Angels: Mentioned as a platform for angel investing in various identity groups.University Programs on Angel Investing:UQ (University of Queensland) has an angel investing program.UNSW (University of New South Wales) offers an angel investor course.Wade Institute runs the VC Catalyst course.Southern Angels in SA (South Australia) is reportedly working with the University of South Australia on a similar program.First Believers and Explorers Program: Both Cheryl Mack and Maxine Minter mention participating in this program.Mentioned in this episode:June 2024 – Vanta First ChequeNovember 2024 - Galah CyberNovember 2024 - Rocking HorseThis podcast uses the following third-party services for analysis: Spotify Ad Analytics - https://www.spotify.com/us/legal/ad-analytics-privacy-policy/

SummaryAnabel Lippincott Paksoy, partner at 43, discusses the importance of building communities and their role in early-stage investing.She shares her experience creating the council, a female-first investing group, and emphasises the need for a deep understanding of founders and their motivations.Anabel also highlights the value of professionalising angel investing and finding founders with a strong sense of purpose and followership.She concludes by discussing her investment preferences, focusing on niche communities and founders with a deep understanding of unsexy problems.About The GuestAnabel Lippincott Paksoy is a partner at 43, a pre-seed fund based in the Bay Area. She is also a partner at The Council, a female-first investing group. Anabel has a background in people operations and has a passion for building communities and supporting early-stage founders.Key TakeawaysBuilding a community is about creating a space for like-minded individuals to connect and share deal flow.Investing in early-stage startups is a high-risk asset class and should not be undertaken unless one is aware of the risks and willing to lose the money.Angel investing can be treated as a learning budget, focusing on maximising learning and gaining experience rather than making immediate financial gains.When evaluating founders, looking for a deep, authentic “why” behind their venture and a strong sense of purpose is essential.The ability to pivot and adapt is crucial for founders, as it demonstrates a willingness to learn and iterate based on feedback and market conditions.Successful founders' ability to attract top talent and inspire followership is a crucial trait.Quotes“I think the thing that I needed, and again, it’s interesting how trends have shifted, too. Even in 2018, five years ago, it was a little new for operators. These female operators were not already super independently wealthy, to think about deploying capital as independent investors into startups.” - Anabel Lippincott Paksoy.“I think the thing that I know that I look for in people is some kind of deep, deep, deep, deep why that they’re doing what they’re doing.” - Anabel Lippincott Paksoy.“I want to feel that conviction, and there’s no way to vet that. That’s where it gets super personal. I want to ask, could I fall in love with this founder, and I don’t mean romantically? I mean, would I go work for them?” - Anabel Lippincott PaksoyResourcesAnabel Lippincott Paksoy43The CouncilThe AssemblyTimestamps0:00:00 - Introduction to the podcast and guest.0:01:57 - Discussion about Anabel’s first investment.0:05:04 - Conversation about nostalgia and fashion trends.0:06:12 - Exploring the concept of building communities.0:09:48 - Challenges and principles of community design.0:10:30 - Constructing a community for sharing investment deals.0:11:55 - Creating a learning platform through a consortium of investors.0:13:14 - Frustration with lack of conversation about deals in the peer group.0:15:15 - Directing new angel investors to be aware of high risk.0:17:31 - Treating angel investing as a learning budget.0:18:48 - Normalising lower entry prices for angel investing in Australia.0:19:24 - Contributing to the founder’sMentioned in this episode:November 2024 - Galah CyberJune 2024 – Vanta First ChequeNovember 2024 - Rocking HorseThis podcast uses the following third-party services for analysis: Spotify Ad Analytics - https://www.spotify.com/us/legal/ad-analytics-privacy-policy/

SummaryCheryl Mack and Maxine Minter reflect on the year 2023 and discuss the challenges and trends in the startup ecosystem. They talk about the tough environment for founders and investors, with many companies struggling to raise funds and facing down rounds. However, they also highlight the resilience and determination of founders who were able to survive and even thrive in the face of adversity.The hosts discuss the increase in funding for female founders, although there is still a long way to go in achieving gender parity in the industry. They also touch on the growth of climate tech and AI as key areas of investment, with these sectors propping up the funding ecosystem.Cheryl and Maxine express cautious optimism for the year 2024, noting the need for continued creativity and resilience in the face of challenges. They also highlight the importance of addressing issues of behaviour and inclusivity in the startup ecosystem.Key TakeawaysChallenges in the Startup Ecosystem (2023): The year was marked by difficulties for many companies in raising funds, with instances of down rounds reflecting a challenging environment for the startup ecosystem.Resilience of Founders: Success in these tough times was often attributed to the resilience and determination of founders, who demonstrated the ability to navigate through the demanding market conditions effectively.Funding for Female Founders: While there was a notable increase in funding for female founders, reaching a historical high, the conversation acknowledges that more efforts are necessary to achieve gender parity in funding.Growth of Climate Tech and AI: Both climate tech and AI emerged as standout sectors, drawing significant investments and spearheading innovation despite the broader economic challenges.Outlook for 2024: The year ahead is approached with cautious optimism. The emphasis is on the necessity for ongoing creativity and resilience to address and overcome upcoming challenges.Quotes- "I think ingenuity was a real theme. I'm excited to dive in today, obviously. Tis the season to be reflecting." - Cheryl Mack- "The founders that survive this are the ones that we are so excited to back as investors." - Maxine Minter- "I think optimism and holding on to a sense of optimism won this year. Pairing it with creativity, also really effective." - Maxine Minter- "I think 2024 is looking cautiously optimistic. Cautiously optimistic." - Maxine MinterChapters00:05 - Introduction to the podcast00:25 - Reflecting on the year and the challenges faced02:02 - Difficulty of raising funds and the resilience of founders04:32 - Founders' determination to survive and adapt05:08 - Employment Hero becoming a unicorn06:31 - Tentative re-entry of international investors into the Australian ecosystem07:38 - Gap between top founders and average deals narrowing08:49 - Overpaying in the early stages of funding09:05 - Australian tech facing criticism from the media10:46 - Turning point in sentiment with SVB collapse and Milk Run11:18 - Discussion about the impact of FTX and Sam Bankman-Fried's sentencing12:13 - AI and climate tech propping up the funding industry in 202313:56 - AI adoption curve and its impact on the legal tech industry15:01 - Tight capital environment in Q1 and Q2 of 202315:32 - Increase in interest and funding for climate tech17:10 - Rise of climate tech-focused funds in Australia18:19 - Lack of AI-focused funds in Australia20:06 - Creativity in funding and rise of professionalized fund management21:30 - Optimism about more fund raising in 202421:52 - Increase in funding for female founders, but still low overall22:33 - Matching population demographics22:48 - Lack of data on women-led...Mentioned in this episode:November 2024 - Rocking HorseJune 2024 – Vanta First ChequeNovember 2024 - Galah CyberThis podcast uses the following third-party services for analysis: Spotify Ad Analytics - https://www.spotify.com/us/legal/ad-analytics-privacy-policy/

Summary:Elaine Stead joins the podcast to discuss bravery and courage in the investing world, particularly as a woman in the Australian ecosystem. She shares her journey as an investor and highlights the importance of investing in education and building networks.Elaine also challenges the notion of being a contrarian investor and emphasizes the need for a high tolerance for risk. She discusses portfolio construction and the importance of managing risk and diversification.The conversation also touches on the challenges faced by women in the industry and the need for change in the ecosystem.Our supporters:Scendar - Australia's OG startup accounting firm catering to all stages of your business' life.Free 1-hour consultation about your Business' growth plans and finance needs.Contact Scendar todayTuro - The world's largest car-sharing marketplace, and it's the perfect app for travel.The booking process is so convenient, you can get the car delivered and the hosts are super friendly.Download the app today!About The Guest:Elaine Stead is a General Partner at M8 Ventures and an experienced investor in the Australian ecosystem. With nearly 100 investments under her belt, she is known for her bravery and courage in making investment decisions. She has a background in science and innovation and has built a strong network in the industry.Key Takeaways:Investing in education is a crucial investment that can change the trajectory of one's life.Building networks is essential for success in the investing world, particularly for women.Being a contrarian investor is about having a higher tolerance for risk and being able to see opportunities early.The Australian ecosystem needs more diversity in capital allocation and investment decisions.Wealth creation and equity allocation should be more inclusive to drive change in the industry.Quotes:"Being brave is about being fearful of something, but doing it anyway." - Elaine Stead"Diversity in teams signals the ability to manage conflict and work with people who think differently." - Elaine Stead"Making room for others is a show of strength and confidence." - Elaine SteadResources:M8 Ventures: Elaine Stead, the guest on the podcast, is the General Partner at M8 Ventures, a venture capital firm. (Timestamp: [00:00:49])Day One Network: The podcast is part of the Day One network, dedicated to founders, operators, and investors. (Timestamp: [00:00:08])Elaine Stead: A prominent figure in the Australian investing ecosystem, recognized for her experience and insights into investing. (Various Timestamps)Alex Rampell: Mentioned by Maxine Minter in the context of investing perspectives. (Timestamp: [00:10:15])South by Southwest Sydney: Elaine Stead mentions she will be on a panel at this event. (Timestamp: [00:25:20])Aussie Angels: Discussed in the context of making investment...Mentioned in this episode:November 2024 - Galah CyberJune 2024 – Vanta First ChequeNovember 2024 - Rocking HorseThis podcast uses the following third-party services for analysis: Spotify Ad Analytics - https://www.spotify.com/us/legal/ad-analytics-privacy-policy/

Rayn Ong, an angel investor and founder of Archangel, shares insights on early-stage investing. He discusses building his network, compounding value, breakout companies, portfolio synergy, and evaluating opportunities. Rayn's entrepreneurial approach to investing led to his success.