© 2017 Right Click Capital. All rights reserved.
We have an extensive network of investors, funds and founders around the world, including Wavemaker Partners, Golden Gate Ventures and the Founder Institute. We’re also a member of the Draper Venture Network (DVN Beta), which enables us to source industry intelligence and strategic opportunities for our portfolio companies.
We support the local community through organisations like AVCAL, and have made the pledge to support open source seed financing documents.
Right Click Capital is led by entrepreneurs who have started, scaled, and sold multiple technology businesses. We love sharing lessons learned and supporting founders through data-driven discussions.
Not only is Right Click Capital deeply embedded in Australia's entrepreneurial ecosystem but we have an extensive global network of investors, funds and founders including Wavemaker Partners, Golden Gate Ventures, the Founder Institute and the Draper Venture Network (DVN Beta). This enables us to connect founders with mentors while also sourcing industry data and strategic opportunities for our portfolio companies.
We know that speed is critical for success. We make investment decisions quickly. Once invested, we use our team, extensive global network of industry veterans and investors to assist businesses execute their growth plans.
To keep pushing transparency and openness in the community, here is a set of questions we often receive, and here are our straight answers.
Bringing in any external investor is a serious decision. We advise seeking capital only if doing so will enable your technology business to grow quickly, and when this growth will give you a disproportionate advantage in your market-segment (rapid growth doesn’t mean disproportionate advantage in all markets).
If you do decide to seek an investment, make sure you have a clear understanding of the different types of investors out there (including angels, VCs, corporate VCs, and “strategic” investors), the ways VCs can generally add value to companies, and what specific style of investor will be most helpful in your unique situation.
In our view, when we back a business it is a long-term relationship. We want to roll up our sleeves together with founders and early employees, so a lot of our decisions are about fit.
Yes. We enjoy getting to know founders early, and one of the most satisfying parts of our role is giving advice to entrepreneurs who are going through the very early challenges of setting up and scaling businesses. We’ve been through it, know how hard it can be, and love giving back to the community.
Yes. We invest in businesses based in Australia, New Zealand, and South East Asia. For businesses based in South East Asia, we tend to follow instead of lead rounds. For companies based in Australia or New Zealand, we are very open to both leading rounds and following.
For businesses in which we have not invested before, we only occasionally invest in series B and C rounds. Usually this is if there’s a phenomenal fit with our networks and expertise. If this might be the case then we’d love to hear from you.
We invest in and back technology-based businesses in any sector, except for certain biotechnology areas (e.g., we do not have substantive expertise in drug discovery). Most of our investments have historically been in SaaS (both B2C and B2B), platforms, the Internet of Things (IoT), ad- or media-tech, healthcare broadly, and high tech.
Instead of us being highly sector-specialised, we enjoy hearing and learning from founders–who are experts in their fields–why their industries are ripe for disruption, how their markets will play out in the coming years, and why their products or services can win.
We tend to back founders who are experts in their own fields and who have a strong connection to problem they and their business is tackling. We also look for founding teams with technical as well as commercial expertise.
The process can vary greatly between businesses we are considering. Sometimes we spend years getting to know businesses prior to backing them and sometimes we go from an initial meeting to a term sheet in only a few days. That said, here are some general steps we go through with most businesses. The number of investments that make it through each stage vary greatly by company sector and funding round type.
Initial review: The investment team reviews every deck or executive summary we receive. Initially we determine if the business fits our broad mandate and try to work out if the business is a direct competitor with any of our existing investments.
First chat: We have an initial meeting (or a phone call) with the founding team, which is 30-60 minutes.
Deep dives: There may be one or two follow-up meetings so other members of the investment team can get to know founders and to help us understand the team and business. If a business is further along and to wrap our heads around the particulars of a business model, we may ask for a few specific pieces of data.
Final decision: The full investment team then does a final dive into two areas. First, the founding team (and possibly their early employees), the market segment, and the business model. Second, we evaluate our own experiences, global networks, areas of expertise, and our ability to add substantial value to the company. We pass on investment opportunities if either area is not a great fit. If we go in, we go all in.
No. Like most larger VC firms in Australia and in the USA, we do not sign NDAs (except in exceptional circumstances such as for an unusually late stage company). That said, the venture community is built on mutual trust and reputation. You can read a lot about this online, such as Mark Suster’s page here.
There’s no minimum cheque size for us, although practically we rarely go below $100k. We can lead rounds up to $10m, and for rounds larger than $10m we usually only follow.
For companies in our portfolio, we are very comfortable bringing investors together for subsequent rounds as well as making follow-on investments in much larger rounds (our team has co-invested with over 100 other investors around the world).
The process can vary greatly between businesses we are considering. Sometimes we spend years getting to know businesses prior to backing them and sometimes we go from an initial meeting to a term sheet in only a few days. In general, if you need a decision from us very quickly (i.e., in a few days) then it just raises the conviction we need before jumping all in.
Unlike some other investors who are focussed on leading and/or following investment rounds, we are very comfortable and open to either. It all depends on the business and how we can best help.
Our investment team likes to roll up its sleeves to support the businesses we back in whatever way will be most impactful for the founders. Sometimes this is a helping hand with strategy development, sales, marketing, media, or operations, or it can be that trusted thought partner you need when times get tough.
Also through our extensive global network of investors, funds and founders–including Wavemaker Partners, Golden Gate Ventures, the Founder Institute and the Draper Venture Network (DVN Beta)–we source industry data and strategic opportunities for our portfolio, and help find subject-matter experts as well as mentors that founders need.
Yes. We are very open to follow-on investments in our portfolio businesses in series A, B, and C rounds. As some companies continue to grow, it can be helpful having different investors lead subsequent rounds (they bring different perspectives and it can help with governance). In these situations, we’re very comfortable bringing groups of investors together even if we’re not leading the round.