June 26, 2015

Why invest in Sapien Ventures

USAKnowledge-icon Silicon Valley expertise -> Australia

We apply Silicon Valley expertise, matched with local Australian knowledge, to help curate, select and guide portfolio companies to grow toward their maximum potential.

Our team consists of serial entrepreneurs, corporate executive veterans, seasoned investment bankers, capital markets experts, technologists and experienced company board directors. Our partnership and advisory team brings together the broadest range of diverse skillsets and entrepreneurial knowhow to help take technology ventures from startup to IPO.

All of us have started or ran multiple businesses. Some of these have became billion-dollar enterprises.

 

Helping hand icon By Entrepreneurs, For Entrepreneurs

We believe resourcefulness comes precisely out of working with a severe lack of resources:

  • How to ramp up marketing, sales, product-development, distribution, legal, accounting and myriads of other important functions for a business, when you  barely have resources to pay for one area?
  • How to disrupt huge incumbent competitors with marketing budgets 10 times your size?
  • How to compete with established brands when yours is completely unknown?
  • How to convince that first few customers that what you have to offer is actually good enough?

We understand all these and more challenges that startup entrepreneurs face, because we have been there ourselves.

We believe this common understanding, combined with our deep sympathies for entrepreneurs, give us an unique perspective for helping (and driving) entrepreneurial success. Something that arm-chair strategists and MBA-school fund managers would likely not easily appreciate.

 

Taxes-free-icon Tax-Free Investment Profits

As part of the mandate by AusIndustry – to grow Australia’s innovation economy through encouraging investments into this sector, a tax-free investment vehicle has been sanctioned and established – the ESVCLP (Early-Stage Venture Capital Limited Partnership) program.

Through this investment structure: “Limited partners (investors) in an ESVCLP have no tax liability on income or capital
gains they receive from the ESVCLP.”

This applies even if the Limited Partner is not an Australia resident or resident corporate entity.

Combining this tax-free treatment with the high returns potential that is uniquely available to technology ventures, we are confident our technology-oriented ESVCLP fund brings a unique proposition for investors looking for the highest return of any asset class within Australia.

 

Validation-icon Maximising Return Potentials Through Market Validation

How do we ensure the companies we select for our initial portfolio has the highest growth potential?

Through market-proven validation:

  • Are revenue-generating
  • Are on an increasing revenue-growth trajectory
    Must have massive addressable potential market
  • Must have defendable IP (patents or patents-pending or highly defendable IP moats)
  • Must have top-notch, experienced and committed teams (no part-timers; single founders)
  • Largely boot-strapped to-date, so extremely resourceful and capital efficient
  • Ideally in enterprise / consumer Internet, fin-tech, mobile, B2B software, marketplaces (verticals and business models that are proven to scale most effectively)

 

China Deep connections and knowledge of China as a market and investor source

Through our long-entrenched partnerships and extensive network, we have deep connections into China – the fastest-growing and arguably largest economy in the world.

China is Australia’s largest trading partner. Australia is the largest recipient of foreign direct investment capital from China, GDP-adjusted. The two countries have just signed a bilateral Free-Trade-Zone (FTZ) agreement earlier in 2015. There exists an unprecedented opportunity right now, to create and to leverage an explosive growth of economic and technological collaboration between the two countries.

Through our partnerships with the Ausinan Science & Technology Society, Sydney Chinese Business Owner’s Association, 500IPO, ChinaSiliconValley, USAIG, HYSTA, and many other communities, we have deep reach and close ties to some 30+ technology incubators and municipal-level governments throughout China. We are also part of a group of tightly-knit Chinese-Australian tech entrepreneurs and VC/PE investors in China, all of whom are deeply committed to promote the two-way exchange of capital and innovation between the two countries.