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Latest News
Since August, the Sydney Angels Sidecar Fund has made 1 new investment, $150,000 in Posse, and 4 follow-on on investments in Bubble Gum Interactive, Ingogo, Jayride and ModaUnica
More detailed information on the portfolio companies is available for individual investors via the Proto Investment Partners website. Each investor should have a log on and password to access the companies' information and updates - if not, please contact Sarina Lissenburg on (03) 9288 9402.
Sydney Angels Deal Pipeline
The latest Sydney Angels members' meeting was held at 5.30pm Monday 10 February with 3 startups presenting at the PwC, Darling Park Tower 2, Level 10, 201 Sussex Street, Sydney. The deals presented at this meeting were:
- Perimeter Security Industries - Fibre optic on ground sensor mats for intruder detection, interfaced to all major alarm systems, provide near zero false alarms.
- Radial Flux Laboratories - Generators for mass-market gensets (say 5kW-20kW) with markedly better efficiency, electrical performance, weight and durability.
- Clarity Pharmaceuticals - Clarity adds value to therapeutics through the development of companion diagnostics using targeted molecular imaging.
Sidecar Fund Portfolio Summary
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Bubble Gum Interactive
Fund investment:
$200,000 (1st round)
$300,000 (2nd round)
$75,000 (3rd round)
Description:
an independent entertainment development studio whose first massive multiplayer online game for kids, Little Space Heroes, launched in December 2011, is played in more than 80 countries
Website:
bubbleguminteractive.com
Update:
- Cake Bake Blitz mobile game - continues to perform well with 100,000 installs across iOS and Android via OTT partner Tango. The team is working on a version of the game with Facebook social integration, which should be ready soon.
- Space Heroes Universe - Sales increased slightly over the holidays and continues to generate subscription and licensing revenue. Empire Licencing partners in Asia showcased Space Heroes at the recent HK Toy and Licensing show.
- BGI is currently working on finishing new products including Lilac and Lynx puzzler (due for completion by end of March) and Battle Card game (due for completion by end of May).
- The key focus for Q1 is consolidating a marketing and distribution plan for Cake Bake Blitz on Tango.
- BGI are in early stage discussions with a mobile marketing company in regards to a revenue share agreement for the Facebook version of Cake Bake Blitz.
- Other deals that BGI are currently negotiating include two co-production deals, distribution agreements with Asian game/OTT platforms, and a game based on an existing US television cartoon series.
- The company raised a $250,000 bridging round (including a follow-on investment from the Fund, which will be used with additional funds from co-production and revenues from SHU virtual world and mobile games for operations out to Q3 2014.
- BGI has moved offices and further cut expenses, with the current monthly burn rate under $20,000 but will ramp up again to approximately $40,000 per month as new deals are completed.
Recent Press:
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Ninja Blocks
Fund investment:
$75,000
Description:
the internet of things - a hardware and web-service platform that lets you control and build apps that talk to connected devices
Website:
- Completed another successful Kickstarter campaign raising $578K in pre-sales for the new Ninja Sphere
- Australian ISP iiNet has initiated a partnership with Ninja Blocks to facilitate home automation systems via its new home routers
Recent Press:
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International Bodyboarding Association
Fund investment:
$100,000
Description:
the governing body of world bodyboarding. The world's best bodyboarders competing at the world's best locations.
Website:
Update:
- Despite efforts by the new management to restructure the business it appears that IBA will not be able to continue as a going concern
- Currently, discussions are being held to identify a buyer for the assets of the company which include boarders contracts (until 2015) and licensing rights to events.
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StageBitz
Fund investment:
$50,000 (1st Tranche)
$50,000 (2nd Tranche - milestones now achieved)
Description:
online platform for theatre, film and TV allowing you to maintain a full inventory of props needed for a show, and borrow things you don’t have
Website:
Update:
- New StageBitz customers include Bell Shakespeare, NIDA and QUT
- ANUConnect Ventures approved the final $200K tranche investment in December
- StageBitz achievements in 2013 include: 50 customers across four markets, a pipeline of 800+ prospects, and 20+ high probability accounts in final stages of evaluations
- StageBitz has been shortlisted for Best New Startup in the Startup Smart Awards (results announced March 26). There is also a people's choice award so please feel free to support StageBitz
Latest Press:
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Ingogo
Fund investment:
$321,296 (1st round)
$127,346 (2nd round)
Description:
puts you in direct contact with the nearest taxi to you so you can get from a - b, quickly, safely and easily.
Website:
Update:
- In December investment bank UBS and other private equity funds invested $3.4 million into ingogo, valuing the two-year-old Australian start-up at $25 million ahead of a potential listing on the Australian Securities Exchange later in 2014.
- Ingogo opened a Melbourne office before Christmas and already have signed up a large number of drivers keen to take advantage of the booking system, in car payment/receipts and driver commissions
- In cab payment growth continues to grow extremely strongly and ingogo may start looking at other niche verticals in which to compete.
- Now seeing consistent daily six-figure payment receipts
- We encourage all Sidecar Fund investors to download the ingogo app for iPhone or Android and use it for your next Sydney or Melbourne taxi trip.
Recent Press:
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Zenogen
Fund investment:
$150,000
Description:
has developed graphite electrodes for Water Electrolysis: the only zero-carbon-emissions method of producing industrial gases such as Hydrogen.
Website:
Update:
- CEO Daniel Zafir and COO Alex Metelerkamp travelled to the USA to present at two international conferences (New England Venture Summit in Boston and Industry Growth Forum in Denver) and met withseveral potential commercial partners, including Panasonic (Japan), Giner (USA), Bosch (Germany) and Siemens (German).
- Zenogen was deemed a Top Innovator at New England Venture Summit.
R&D/Product Development:
- Chlorine:Demonstrated preliminary chlorine production, in preparation for device demonstration for Zodiac.
- Hydrogen: Normalised comparison of Zenogen’s electrode more aggressive hydrogen production with lower voltage than Platinum. Analysis of oxygen production confirms electrode stability indicators
- Intellectual Property: Zenogen’s PCT patent application was successfully submitted on October 4, 2013. Also, Zenogen filed complete innovation and utility patent applications in China on October 4, 2013.
Recent Press:
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CriticalArc
Fund investment:
$196,000
Description:
CriticalArc Safezone is revolutionising the way safety and security is managed on open campuses. It's a powerful, easy to use command and control system that extends the Security Team's view of any situation and allows everyone to communicate and coordinate in response to any incident.
Website:
Update:
- Recent marketing trips to US and UK to expand market beyond Australia and NZ.
- UK looking promising and Critical Arc is setting up a UK office in Q1 2014 and employing a sales resource in the UK. The first few UK deals have been done at 30% discount to get a few reference sites that will actively work as testimonial clients to open up the market to the rest of the Universities in the UK.
- US a good opportunity at the mid tier university level, where there is no armed police force present (large Universities have full time, armed police). Looking at entering the US by Q3, dependent on further due diligence.
- All is on track and in line with previous commitments on product development milestones. As per budget, a new developer has started in Australia to expedite product development.
- Current development focusing on Per-region notification subscriptions (for OmniGuard and SafeZone App), Roll out of Lone Worker and Infrastructure changes and Multi-Geography architecture (Support for European Data Protection).
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Controlabill
Fund investment:
$150,000 (1st round)
$150,000 (2nd tranche if hurdles achieved)
Description:
makes direct debit easier, more cost effective and simply better, removing the paper processing pains, expensive support outlays and helping billers reduce set up costs.
Website:
controlabill.com
Update:
- Controlabill has been unsuccessful in closing forecast customer contracts
- With working capital limited, management had relied on a completed customer contract to provide a development/integration budget to complete a working version of the direct debit product
- As a result, with runway exhausted, Controlabill is looking to raise a bridging round in order to engage a new technical development team, sales director and new CEO
- The maintenance of US patents has proven to be costly and remains a drain on limited resources
- Controlabill mangement/board with the agreement of current shareholders are currently preparing an overview/audit of existing technology platform.
- Upon completion of this review a revised strategy and budget/financial plan will be prepared to propose the future direction for the business
- The Fund has only invested the first tranche ($150K) of a planned $300K investment. The second tranche was dependent upon performance hurdles being achieved.
- The Fund, along with other Sydney Angels/investors, will review the new business strategy/budget before deciding on any further investment.
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Jayride
Fund investment:
$150,000 (1st round)
$250,000 (2nd round)
Description:
a platform to find unique, cheap and fun land transport. Carpool, rideshare, bus, shuttle, relocation cars and more. Compared with other current ride-sharing and carpooling startups, Jayride’s unique angle is to provide a single interface for finding all your transportation options, including commercial transport, and combining that data with the available ride-sharing options.
Website:
jayride.com.au
Update:
- Supplier growth: Uptick from launch of booking product continues strongly at 30 new suppliers with average 10 routes each per month per BDM.
- Data growth: Increase of bookable transport from 26k connections to 78k connections (300% growth this quarter)
- Booking growth: Second full quarter of booking product use. Increase of bookings from $21k per month to $51k per month (245% growth this quarter).
- Marketing increased in December, further deployment of capital in hiring and equipment planned for 2014.
- There were significant technical enhancements to the platform including new transport mode added to booking product: Private Hire Cars. Two modes are now bookable (Private Hire Cars and Shared Shuttles). There have been further major updates to coverage, availability and pricing concepts; consumer booking product; and SEO and SEM marketing technology.
- Recent capital raising: $500,000 of new investment raised with round closing fully subscribed on 25th November 2013.
Recent Press:
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ModaUnica
Fund investment:
$145,006 (1st round)
$165,627 (2nd round)
Description:
a global brand management company designing or sourcing unique product for the pet market with licensed and proprietary brands.
Website:
modaunica.com.au
Update:
- Having signed a 10-yr master licence contract with RSPCA, ModaUnica has begun to review and negotiate new licensing deals
- ModaUnica have established ModaUnica Retail, a joint venture with Velocity Brand Management to provide operational support for new licensing deals and associated on-line retail opportunities
- New or revised licensing deals have been completed for RSPCA credit cards and pet pharmaceuticals
- With the expanded business ModaUnica will soon announce a high profile CEO appointment. ModaUnica's founder, Cesare Corgatelli will continue to manage the RSPCA relationship and brand licensing business development.
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TheBestDay
Fund investment:
$131,488 (1st round)
$131,488 (2nd tranche if hurdles achieved
Description:
make plans happen - calculate the best day for your plan
Website:
Update:
- After shipping Widget V2 and going live with their first major partner, Sydney Festival, TBD has been focussed on improving the user experience of making and responding to plans on the website. The fundamental goal is to lift the user engagement metrics to the point that the majority of planners are returning to make regular plans and invitees are being converted to make their own plans.
- While they are chasing this product market fit, TBD has continued to sign new Partners to add the Widget and are refining the marketing methods to engage new and existing users.
- Product development: It was agreed by the Board in November that all new feature development, including group payments, would commence once the core website has been updated. The iOS app has continued to be developed in tandem by in-house contractors. The progress made on the Invitation and Plan Creation designs allowed TBD to go live with the completed update mid February.
- Partner Development: Sydney Festival successfully integrated with the Widget API in time for launch; the number of plans was below expectation however the confirmation rate and invitee conversion rates were above the website’s average. Sydney Dance Company, Sydney Film Festival, Sydney Writers Festival, Powerhouse and Broadsheet have all signed agreements to add the Widget in the coming month. A Commercial Partnerships Manager has been hired to lead partner development.
- The marketing activities have been focussed around user acquisition and user engagement.
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DriveMyCar Rentals
Fund investment:
$130,000
Description:
an online community connecting car owners looking to earn some extra money by renting out their car, with drivers who are no longer prepared to pay high car rental costs and want more choice..
Website:
Update:
- Qanda Technology Ltd (ASX: QNA) approved the acquisition of DMCR on10 January 2014.
- This is a significant positive step for DMCR in the provision of further funds and provides greater flexibility for DMCR to become a larger player in the collaborative consumption space in Australia.
The summary of the transaction is as follows:
- first tranche upfront shares to be issued: 780m shares (this will be 1,193.1933 QNA Shares for each Ordinary DMCR Share held);
- second tranche shares to be issued: 260m shares (this will be 397.7311 QNA Shares for each Ordinary DMCR Share held) upon the DMCR business achieving a profit of $500,000 in any 12 month period within 36 months of the transaction being completed;
- the first tranche of shares to be issued will be subject to an escrow of 12 months (which means they will not be able to be sold for 12 months). After 12 months the shares received by DMCR shareholders will be able to be traded on the ASX. The deferred shares (2nd tranche shares) will not be subject to any escrow period once they are issued
- QNA Shares last traded at $0.003, so based on this price the total value the upfront and deferred consideration is $3,120,000
Following the issue of the QNA shares to DMCR shareholders, QNA will undertake a rights issue to all shareholders:
- the rights issue will raise up to approximately $750,000 with funds raised being predominantly used to grow the DMCR business;
- the rights issue is currently underwritten for $250,000;
- DMCR shareholders will be able to participate in the rights issue if they choose; and
- the rights issue will be undertaken at $0.002 per share and any shares that are purchased under the rights issue will not be subject to escrow and will be able to be sold on market.
Recent Press:
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Posse
Fund investment:
$150,000
Description:
helps you find all the best places in the world according to people whose tastes you can trust - your friends.
Website:
Update:
- in late April/early May Posse will be launching the Android version of the app (currently only available on iOS), a new user facing website, a mobile website and a new merchant dashboard.
- at the same time Posse will begin offering upgraded subscriptions to merchants at an initial cost of $10 per month.
- There are now more than 43,000 merchants on the platform and the app has been downloaded over 150,000 times.
- Posse currently has 15 employees in Manila, including engineering teams focused on Android, iOS and the merchant dashboard, telesales, customer service and database management.
- the Sydney team consists of designer Anna Saguinsin, engineering lead Aaron Tay, a junior engineer, a communications manager and Rebekah Campbell (the founder).
- currently raising $2M at a pre-money valuation of $8M, which is a small increase from the valuation at the last round.
Recent Press:
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