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Atlassian, Canva, Culture Amp founders back new Startmate fund

Yolanda Redrup
Yolanda RedrupRich List co-editor

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The who’s who of Australian founders have piled into accelerator program Startmate’s new investment funds, capping off the biggest year in its history.

Founded in 2011, until this year Startmate had only raised $11.1 million for its Accelerator Fund in total, but in the last 12 months it has banked $14 million for its next Accelerator Fund, as well as its first Continuity Fund.

Startmate CEO Michael Batko says he wants the accelerator to support start-ups through all phases. 

The new Continuity Fund is designed to let Startmate continue backing its successful alumni as they mature.

Speaking to The Australian Financial Review, Startmate CEO Michael Batko said the accelerator was hoping to have raised $30 million in new funding by early 2023.

So far, founders of Atlassian, Canva and Culture Amp, as well as Startmate mentors such as Adore Beauty’s Kate Morris and Up’s Dom Pym have contributed to the fresh funding.

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Companies that have raised in the last year that are Startmate alumni include Morse Micro, Swoop Aero, Amber and Great Wrap.

“It’s amazing to see founders come back as mentors and pay it forward to future founders,” Mr Batko said.

“[The investments] have come on the back of quite a few cash returns in the last year.

“The most costly mistake you can make is missing that one big opportunity. We know venture returns come from outliers, and the Continuity Fund is designed to prevent omissions by auto-deploying additional funds into the best Startmate companies in post-accelerator funding rounds.”

Startmate, which now runs a variety of programs including fellowships to help would-be start-up employees break into the ecosystem and train more angel investors, receives about 1000 applications for its start-up accelerator program each year.

Of these, it invests in the top 3 per cent, Mr Batko said.

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“Historically, 65 per cent of these companies go on to raise VC funding, which means our Continuity Fund will invest in the top 1 per cent to 2 per cent of start-ups across Australia and New Zealand,” he said.

Since 2011, about 200 have scored backing from Startmate.

Startmate head of investments Brady Flockart said a dollar invested in all of Startmate’s 2011 to 2020 funds was now worth 3.4 times the amount after management fees, carried interest and other expenses.

Startmate has already returned the cash, and then some, to its investors in its 2011, 2012, 2013, 2015 and 2016 funds.

“Startmate continues to build on our track record of investment returns that place us alongside the best in the world (of our first decade, eight out of 10 years Startmate was in the top quartile of global venture returns,” he said.

Some of Startmate’s most notable returns so far have come from residential rental technology company HappyCo, which raised $US52 million earlier this year, enabling Startmate to sell its stake and return its entire 2012 fund nine times over.

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It has also sold down its stake in edtech company Edrolo, which returned 2.5 times its 2013 fund.

This year, companies accepted into Startmate’s accelerator program included procurement marketplace ChemCloud, disability tech company Maslow, decentralised finance start-up Minke and life admin app Eggy.

In 2023, Mr Batko said Startmate would launch two new industry-specific fellowship programs.

First up will be a program dedicated to athletes - people who Mr Batko said possess many of the qualities of a good entrepreneur.

“They set a goal and work day and night to achieve it. So many athletes are perfect candidates,” he said.

The program will run in February/March next year. In April/May, it will also run a climate tech program, for which it has already had more than 500 people express interest.

Yolanda Redrup is the co-editor of the AFR Rich List. She previously reported on technology, healthcare and Street Talk. Connect with Yolanda on Twitter. Email Yolanda at yolanda.redrup@afr.com

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