Digital investment platform for alternative assets, VentureCrowd and venture capital firm Pitch VC, have announced a new venture to transform startup fund management in Australia.
Pitch VC founders Johnny Quattro and Campbell Walshe will join the VentureCrowd executive team tasked with bringing a new Emerging Fund Manager platform to market.
The platform will offer VentureCrowd's expert technology and funds administration infrastructure as a white-label product. This will empower subject matter experts and highly networked individuals to launch and operate their startup venture capital fund.
Johnny Quattro, Co-Founder of Pitch VC, says: "In the past two years of raising and deploying Pitch VC's first Founders Fund with the ambitious goal of backing 100 early-stage startups, we quickly realised the operational challenges of launching a startup fund of this size."
"Having scoured the market for some sort of technology or support that could help us, we realised that VentureCrowd's unique technology and capabilities were a perfect fit."
"Having spoken to the team there, we shifted our thinking to solving not just our problem but fixing a gap in the market for a platform that can empower an entirely new generation of startup fund managers," says Quattro.
VentureCrowd's technology platform has powered over the investment of AUD $310 million of capital since inception, redefining the landscape of alternative asset investment by digitising the entire venture capital process. It is also enhancing its state-of-the-art investment infrastructure, with a Web3 version due by the end of the year.
Alongside the tech component, VentureCrowd's back office team have established and administered several investment funds, such as the VentureCrowd HealthTech Fund.
Steve Maarbani, CEO of VentureCrowd, comments: "There are hundreds of potential fund managers in Australia who are held back only by the administrative and technological burden of building a cost-effective back-office."
"Having Johnny and Campbell join us to develop this innovative new offering expands VentureCrowd's venture capital capability by giving the hottest new fund managers in the market a platform from which to build and operate their new fund."
"In effect, it democratises startup fund management in the same way that crowdfunding democratises startup and property investment," says Maarbani.
Johnny Quattro is a computer science engineer and founder of the music technology app JAMN. JAMN sold over 5 million copies on the iOS App Store worldwide, won multiple awards, and later sold part of its technology to a US tech company.
Moreover, Campbell Walshe is the co-founder of global Medtech company CNSDose and co-founder of Pitchblak, a venture studio that went on to create and launch Mr. Yum.
Together, they co-founded Pitch VC and launched Founders Fund 1, the first external fund to trial the new VentureCrowd platform as its first user.
The VentureCrowd Emerging Fund Manager platform will manage fund establishment, compliance, and administration so that new fund managers can focus on finding and investing in the standout companies of tomorrow.
As portfolio companies grow, they will have access to the entire VentureCrowd ecosystem, including new investors across Australia and South East Asia, helping them raise follow-on funding faster.
Maarbani adds: "The effective commercialisation of innovation requires the most efficient private capital market possible. One way to improve efficiency is to increase participation at every level, thus diversifying decision-making and increasing the volume of capital available."
"VentureCrowd's current investment technology grants access to countless new investors, offering opportunities previously unavailable to them. This new platform is designed to continue that theme by removing the barriers to entry to as many talented new fund managers as possible."
Quattro says: "We believe that Australia holds an exceptional lineup of new venture capital fund managers ready to step up and run their show; it is clear that the future of venture capital will not be centralised."