Venture technology firm BlueChilli is looking for investors to join a new $10 million fund for early-stage startups with a technical edge.
BlueChilli chief executive Sebastien Eckersley-Maslin says the fund has raised $2.2 million so far from internal circles and is launching to the general public later this week.
“It provides a way for non-typical angels to get involved in technical startups,” he says. “There are only 400 to 500 active angels in Australia and so what we’re trying to do is tap into the 100,000 Australian households that have net worth of more than to $5 million and disposable income or investable income of around $2 million.”
The fund was approved as an Early Stage Venture Capital Limited Partnership by AusIndustry in August, giving it capital gains tax and tax exempt status.
Eckersley-Maslin says an angel investor needs to be educated about the individual businesses and the industry sector and one of the best ways around that is to have a diverse portfolio – something the new fund can provide.
“The BlueChilli venture fund will invest into all 100 of BlueChilli’s assets, giving that broad reach and the angels investing in the fund can also take a stake into one or two of the individual companies,” he says.
The minimum for an investor is $100,000, delivered at a rate of $20,000 a year over five years. Eckersley-Maslin says the goal is to deliver an annualised return of more than 20 per cent over the seven to 10-year term of the fund.
BlueChilli charges 2 per cent in management fees and 20 per cent in carried interest and has engaged Artesian Venture Partners to manage the fund.