Australian investment firm Tank Stream Ventures has closed Aus$20 million funding round and is on a look out for new Australian startups to invest the fund. The company also disclosed that with its important investor in China, it is seeking for startups that is looking at global expansion especially China.
Managing partner of Tank Stream Ventures Rui Rodrigues could not reveal the name and the identity of the Chinese-bases venture capital firm who is on the startup hunt. But said the Chinese backer could provide great opportunities for the startup who are ready to expand in China.
“We are not only looking for the capital and for us to accept a partnership with this significant group was mainly motivated by the fact that it opened up a whole series of opportunities for both the fund and for our companies,” said Rodrigues. He also added, “Our strategy is to invest in companies that are building locally and have the potential to scale on a global basis.”
Tank Stream Ventures is not new to funding startups. It has already invested on goCatch, PocketBook and Bugherd. Today, Equitise, a company that brought equality crowd funding to Australia, has received funding of an undisclosed amount. “Equitise’s biggest opportunity is the fact that they are democratising access to capital by opening to retail and wholesale investors the possibility of investing in private companies,” said Rodrigues.
The firm has backed up six companies and is in the final stages of the talk with the two other companies. On an early stage or a new company, the average investment of the company is around Aus$500,000 and could even hit close to Aus$1 million in the forthcoming rounds of funding. The firm is waiting for PocketBook and goCatch to stabilize better in the Australian market to take it for the global markets. Rodrigues said the model of these two companies are quite easier to replicate and take it globally.
Regarding entering China, it is not an easy task. Without backing up by Chinese company it is almost impossible to enter the Chinese market. Rodrigues said, “It is something that a few companies have tried to do, but unless you have the local expertise, network and culture, then it is very difficult in China. This is why we are excited by the new partnership, and is the main reason why we are doing it.”
Just as how much Australian companies are excited about entering China, Chinese investors are attracted to invest in Australia as they feel it is much more easier to crack than the local market in the US, which has been giving them tough competition. Rodrigues stated, “We have a market that can be representative of many other markets, because the technology adoption in Australia is very good and we are viewed as a very good test-market for a business to have global ambitions.”
TSV was launched in 2012 by BRW rich lister Markus Kahlbetzer with Airtasker’s Tim Fung and Jonathan Lui and x-Renault F1 engineer Rui Rodrigues who manages the fund’s investments.