Under the partnership, Sydney Angels, a group of more than 70 high net worth investors, will refer startups to the VentureCrowd platform that can benefit by crowdsourcing funds from sophisticated investors.
Reputedly one of the most successful groups of its kind, and the only angel group in Australia with a dedicated sidecar fund, worth $10 million, Sydney Angels has made more than 35 investments, of between $200,000 and $500,000, in companies such as Ingogo, Venuemob, Posse and DriveMyCar Rentals.
VentureCrowd says that the partnership with Sydney Angels will help to grow the number of startups that could join its platform, which has already been used to fast-track growth in companies such as Ingogo, Fame & Partners and CrowdMobile.
“That way we can keep the failure rate of the startups we invest in to a more acceptable level than it would be without good due diligence.”
VentureCrowd previously worked with Sydney Angels to co-invest in fashion technology startup Fame & Partners, and the partnership between the two companies formalises an approach to further collaborate in 2015.
“Equity-based crowdfunding is a great way to access a different group of investors and to top up an investment round led by more experienced professional investors, like Sydney Angels members,” Jackson said.
“We support this investment method as complementary to existing ones, not an alternative. It would be great to see equity crowdfunding platforms like VentureCrowd opened up to retail investors.”
Investors can invest as little as $1000 on the VentureCrowd platform, and the company says it encourages wholesale investors to build a diversified portfolio of start-ups to mitigate the risks involved in startup investments.