Nice post Matt - and thank heavens for Silicon Beach too I say :-)

On Sep 13, 8:26 pm, Matt <[email protected]> wrote:
> Hi Renai
>
> Thanks for the write up :)
>
> I was trying to find another early stage VC-fund investment in IT in
> the past 6 months and found it very difficult.
>
> VC funding is not particularly sought after by typical web-based start-
> ups these days for two key reasons:
>
> 1.  I look to invest $1.0 - 3.0m in a Series A round, most start-ups
> these days can get to cashflow positive on a lot less and that's where
> the average entrepreneur is happy to either stop thinking about extra
> capital ("I am cashflow positive already") or start believing in
> valuations that would mean my $1-3m would not give me any substantial
> stake in the business.
>
> 2.  Our terms are very very tough compared to family and friends or
> private equity or just about any other form of investment money.  We
> ensure very strong downside protection, which frankly is very off-
> putting for many entrepreneurs
>
> Read VentureHacks to get an idea where VC sits in the cycle, you can
> get a lot from Angels if you can find them, but a VC is mean to help
> propel a business to the next level and should bring a lot more than
> cash.  I have sat on both sides of the table, I don;t pretend for an
> instant that I can bring the networks or skills of the average Silicon
> Valley VC but from little ol' Perth I can certainly help a business go
> international for the first time.
>
> Agworld was an exception opportunity for us, great management, an
> understanding of the value of VC and some great early traction with
> customers built on the back of some serious sweat and real cash from
> the founders.  Hats off to them for seeing where Yuuwa could fit in
> and giving us a chance
>
> Matt
> Co-founder
> Yuuwa Capital LP
>
> On Sep 13, 8:42 am, Renai LeMay <[email protected]> wrote:
>
>
>
> > Innovation Bay is constantly calling for people to come and pitch to
> > them, and now this drops out of the 'sky' -- or should that be the
> > 'Yuuwa'? ;)
>
> > Perth VC pumps $1.5m into agriculture IT 
> > startuphttp://delimiter.com.au/2010/09/13/perth-vc-pumps-1-5m-into-agricultu...
>
> > I am beginning to suspect that the whinging about a lack of VC capital
> > in Australia is just that ... whinging.
>
> > Thoughts?
>
> > Renai
> > Publisher, Delimiter
>
> > PS I am heading to the next Innovation Bay dinner -- will be
> > interesting to see what the sentiment is on the issue there.

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