Angel round investment fund
The BlueChilli Venture Fund (BCVF) is a registered ESVCLP, an Australian tax-exempt venture capital fund which invests funds in BlueChilli startups which have successfully completed the BlueChilli accelerator program and have raised angel funding.
The ESVCLP program is a Federal Government initiative designed to stimulate investment into Australia’s early stage venture capital sector by allowing generous tax concessions to investors in funds that meet the registration and investment criteria set out in the Venture Capital Act 2002 (Cth). All income and capital gains received by investors from an investment in the Fund, operating as an ESVCLP, will be exempt from Australian tax.
The Fund’s investment objective is to target an annualised return of >20% over 7-10 years by investing in a diversified portfolio of approximately 100 capital efficient technology startups screened, built and scaled by BlueChilli in the 156 Accelerator Program. The four key tenets of the Fund’s investment strategy are:
- Invest early (seed/angel) at relatively cheap valuations;
- Build a large, diversified portfolio;
- Focus on scalable, capital-efficient technology startups; and
- Target sub $50 million M&A/trade sale exits.
The Fund has the right (but not obligation) to make:
- Seed investments of AUD25,000 in exchange for a 5% equity interest in all BlueChilli startups that successfully complete the Development Phase of the Accelerator Program, and meet the Initial Threshold Criteria of the Fund;
- Follow-on matched-funding investments of up to AUD250,000 in BlueChilli startups that successfully attract external angel/VC investment, and meet the Subsequent Threshold Criteria of the Fund.
As a registered Investment Limited Partnership (NSW), The BlueChilli Venture Fund is governed by the terms set out by the General Partner, managed by an Investment Committee which reviews and approves proposed investments. The criteria for investment by the BlueChilli Venture Fund includes successful existing BlueChilli companies who:
- Have completed the BlueChilli Accelerator Program (The 156 Accelerator); and
- Have raised follow-on funding from three or more external angel investors and/or VCs.
The Investment Committee further confirms that the Accelerator program selection process has been satisfied and the Angel/VC investment criteria have been met, that any conflicts have been declared and that valuations are appropriate for the stage/progress of the startup.
- Alexander van der Laan
- Simon Hackett
- Tim Heasley
- Jeremy Colless
- Stuart Fox