A better way to invest in Australian startups

Startup investing can produce outsized returns but it is risky. To mitigate risk, astute investors

• build a diverse portfolio, across time, company stage and sectors
• select deals carefully after reviewing a very large number of opportunities
• only invest in opportunities in a huge market, usually global, with the potential to produce super high returns
• carry out rigorous due diligence
• structure terms to balance investor protection and founder incentives
• provide the investee company with ongoing support.

While investing in startups is always risky, this is where Jelix can help.

You can access monthly investor updates on each of your investments with Jelix, online at anytime, through your investor portal.

Jelix provides our investee companies with ongoing access to our expertise and networks. We usually take a board role and we encourage investors who can add significant value to take board positions on our behalf.

Using our online platform you can browse opportunities, review our analysis, ask questions online, and meet the founders – all information you need to make an informed decision is at your fingertips. We source, vet, structure and support deals saving you the time and effort.

Jelix investee companies have all experienced high growth. We first invested in StorReduce at a $2m valuation cap and again recently, 2.5 years later at a $12m cap. Our first investment into tagSpace late last year was at a $2.75m pre-money valuation and 9 months later we closed a $1m round at a $5.8m pre-money valuation.

Jelix structures deals for optimal outcomes for investors and founders, paying particular attention to maximising Australian tax incentives for investors. However, we do not take into account the individual circumstances of investors so investors must always consult their own professional advisors.

There is real expertise in negotiating fair terms that balance investor protections with founder incentives to ensure founders are highly motivated to grow the company. We do this for you.

Jelix utilises our investor base and connections to venture capital funds and family offices to build the investment round and ensure that the level of investment is sufficient to support the company to hit growth milestones.

Our vetting process is rigorous and comprehensive.  Our founder is an ex-investment banker (Lehman Brothers & HBOS) and corporate lawyer who brings rigour and disciplined process to Jelix’s investments. Click here for our approach to risk mitigation.  We look carefully at the teams, competition, market, technological advantages and employ independent technology experts to ensure that the tech foundations are sound before committing to invest and offering the opportunity to our investors.

You know we offer you the best Australian startup investment opportunities in our judgement, because we are wholly incentivised by investment performance. We invest our own funds and do not charge startups fees, and our investor fees are heavily performance weighted.

We do the work for you and you benefit from our expertise. We select only the strongest investment opportunities from the hundreds we consider, carry out rigourous due diligence, structure deals for success and provide ongoing support for portfolio companies.

Our entrepreneurial experience and deep connections in the sector place us well to spot the strongest investment opportunities and support founders to grow their businesses.  We only invest in 1 out of 300 we see on referral and at pitch events around the country. From these we select the most promising businesses and only invest in those we judge likely to produce a truly outsized return. These are led by world class entrepreneurs, have innovative technologies or business models, pass our meticulous due diligence process and we must be able to negotiate fair terms.

We are experienced angel investors and entrepreneurs who have been immersed in the startup sector for two decades.  We’re disciplined, highly selective and have a clear investment thesis.

We look for:

Strong founders & team

The earlier the stage of the company, the more critical the founders’ background, temperament and experience becomes. Founder “fall out” or poor performance is perhaps the highest risk for early stage startups. We look for:

• Intellectual firepower and a voracious appetite to learn, unimpeded by emotional barriers
• People we think we will enjoy working with and whose integrity we trust
• A good track record of achievement, and ideally, a good university and previous experience as founder(s)
• The passion, commitment, tenacity and resilience to battle through challenges and make the business work
• Leadership and interpersonal skills; people who can engage others in realising their vision, work well with others and resolve conflicts
• Ideally founders will have experienced the pain point their business is “solving” – at minimum they will have a deep understanding of customer needs and wants
• Skin in the game – founders have significantly invested and are working full time or planning to soon

Market

A real pain point or problem, which ideally, a founder has experienced

• An effective solution with a competitive edge
• A product or service that customers love and for which they are or will be willing to pay
• Scaleability; a huge global market

Deal Terms/Structure:

• Fair protections for investors including, founder retention provisions, 1 x liquidation preference and follow on rights
• Fair valuation – Investing is not only about finding the next Atlassian, it is about investing at a valuation that will make money for investors
• Terms which will incentivise founders to produce strong returns and not impede future funding

Technology

Innovative and strong technology giving the business a significant advantage over competition.

Traction

We prefer to see some traction or at least an MVP, but we recognise that the highest returns can be made investing at a low valuation, often pre-traction; in these cases, though, the founder must have a strong track record and validation that customers will love their product.

Purpose

The company is doing something to make the world better in some way, even if this is just increasing efficiency. We do not invest in anything that is likely to cause harm to people (e.g. gambling, tobacco or alcohol) or the environment.

A stream of startups are referred to Jelix and approach us directly every day.

Jelix does the legwork for you. To find the best of the best investment opportunities we travel to pitch events around Australia (and New Zealand), including Innovation Bay, Muru-D, H2 Ventures, Startmate, ATP Innovations, iLab, Incubate, Elevacao, Heads Over Heels, Sydney Angels, Springboard and the Melbourne Accelerator Program, Brisbane Angels and many others.

You gain unparalleled insider access to the best Australian startup investment opportunities. You can invest in the same deals as top angel investors and Australian and US venture funds. You benefit from our deep immersion in the startup sector where we are recognised as leaders. The best startups are eager for the “smart money” that Jelix brings.