One of two new investment syndicates, VentureX Capital has a specific objective.
Trying to make a difference is not always easy.
Sheryl Frame, Tracie Clark and Stephanie Rowland found out the hard way that their original model for lifting the small percentage of female-led startups that successfully raised money and commercialised was not going to work.
They started VentureX HQ in 2021 with the intention of giving founders their expertise but they soon realised their target market did not have the time to use their services or see value in paying for it.
VentureX HQ director and commercialisation specialist Sheryl Frame said too many of the founders they dealt with still had a full-time job, which meant they found it difficult to attend monthly meetings they had paid to be at.
For those that had quit their job to devote their energies to their startup, the lack of income meant paying for advice was too challenging.
“We formed VentureX HQ with an objective to help female founders grow their business and skills to become investible,” Ms Frame said.
“But we were not attracting the right level of companies, they were very early stage.”
After taking time to regroup, the founders, which includes financial planner Tracie Clark and lawyer Stephanie Rowland, refocused to launch VentureX Capital, an investment syndicate that will raise money via angel networks to put between $100,000 and $300,000 into a startup where such an investment will make a difference.
“We did not want to be another investment group,” Ms Frame said.
“Our preference is definitely for smart investments where our skills can make a difference in context, to help a company grow.”
Ms Frame said there was no minimum investment in the syndicate, allowing investors – often professionals who put some funds aside for investment – to spread their risk.
She said a low entry level allowed people to dabble while being helped through the start of their alternative investment strategy.
VentureX, managed by Rohana Wood, is one of two recently launched venture capital syndicates to emerge in WA, potentially adding extra capital-raising avenues for local startups, particularly those below the radar of new local venture capital funds.
West Tech Investor Network and VentureX both launched their first deals on the Aussie Angels platform.
VentureX is aiming to raise $150,000 for a stake in Hey Lady! which is developing an online community to support women to learn and improve their English language skills.
It is close to a second opportunity.
West Tech Investor Network is seeking $150,000 for Procuracon, a procurement marketplace for the construction sector.
It has slightly less lofty aims than VentureX in its initial investments, looking at a range between $50,000 and $100,000.
The syndicates will add to a fast-changing venture capital ecosystem in Western Australia, where three new private venture capital funds, Purpose Ventures, Fund WA and Quokka Capital, have each received $100,000 per year for three years to assist them with their establishment and working capital needs.
Purpose has subsequently raised about $40 million and revealed its two first investments were Perth-based PlanCare, a technology platform that enables self-managed healthcare-at-home services, and Paperly, a platform that helps schools reduce the administration load on their teachers and staff, while being easy to use for parents.
Fund WA has also announced two investments.
Its first investment was in Hola Health, a national telehealth platform, followed by a stake in VitalTrace, a Perth-based biosensor and medtech company with a mission to create a new global standard of care keeping mothers and babies safe during childbirth.
While each of the venture capital funds have different thresholds, they tend to be higher than the syndicates which allow investors entry at as little as $5,000.
Lead by Rob Nathan, the West Tech Investor Network, which is linked to the annual local technology convention West Tech Fest, is a network of 18 members with extensive experience and are actively engaged in the startup ecosystem in WA.
Other founders of the syndicate are Larry Lopez, Natasha Teakle and Matt Macfarlane.
