First Cheque DayOne.fm

Episode Summary:In this insight-packed episode, Cheryl Mack and Maxine Minter sit down with Michael Batko, the driving force behind Startmate, to explore the intricacies of early stage investing and the power of community in the startup realm. Batko shares his journey, starting from his first investment to steering one of the most active seed stage investing funds in the industry. This episode offers a behind-the-scenes look at how Batko and his world-class team utilize a community-driven approach to identify, select, and uplift transformative business ideas across Australia and New Zealand.
Diving into the Startmate selection process, Batko reveals the operational complexities of coordinating a vast network of mentors and how their personal investment in the fund aligns interests and boosts engagement. The conversation also uncovers the evolution of Startmate's investment thesis, its expansion into diverse industries, and Batko's approach to encouraging non-consensus thinking to unlock extraordinary potential. The episode delves into the significance of carry in VC funds, the strategic role of a continuity fund, and the decision-making framework for follow-on investments, all while reflecting on Batko's philosophy of betting on the hungry rather than the proven.
Michael Batko began his career in corporate finance and consulting before contributing to the growth of two major Australian marketplaces, MadPaws and also played a pivotal role in Expert360's $14 million Series B funding round. After joining as Head of Operations, Batko quickly became CEO of Startmate which is now ANZ’s largest community driven seed fund raising ~$3 million from 100+ investors every 6 months.

Key Takeaways:Startmate's success is rooted in a mentor-driven model, where community engagement and personal investment are key to its decision-making process.Batko emphasizes the importance of looking beyond what's probable and considering what's possible when evaluating investment opportunities.The alignment of mentor incentives with fund performance, through carry, is highlighted as a significant motivational factor.A robust debate around investment thesis expansion led to backing diverse ventures, including non-software startups like non-alcoholic beer brand Heaps Normal.The establishment of a continuity fund at Startmate allows for continuous support of alumni companies, signaling strong belief in their ongoing success.
Notable Quotes:"I remember this entire thread coming up and everybody discussing whether or not we should invest in that non-alcoholic beer company. And it was at that time when I jumped in as start mate CEO and actually had to be like, 'Hey, we can't just rest on our laurels and do things the way we've always done them.'""We've expanded the investment thesis a lot around, essentially always doubling down on people and what they care about.""One of my favorite questions is, and I always keep coming back to it whenever I critically assess a company for myself, is rather than what is probable... what is possible?""One thing I love about being a microfund is that we only invest $120,000 into companies, but at that stage, it actually makes such a massive difference."
Resources:Startmate website for more insights into their accelerator programs. StartmateMichael Batko's professional background and contributions, visit LinkedInDiscussion of eucalyptus's ESOP primer and equity importance. EucalyptusEncouraging all curious investors and founders to tune in and glean actionable insights from Michael Batko's valuable experiences in this episode, as well as to keep an ear out for more enriching discussions in the upcoming sessions.

Episode Summary:In this insightful conversation, co-hosts Cheryl Mack and Maxine Minter unpack the often misunderstood world of 'fund of funds'—investment vehicles that pool capital to invest in a variety of venture funds rather than in startups directly. Tailored for early-stage investors and industry observers, this talk reveals the nuances of fund structures and investment strategies designed to mitigate risk and maximize returns.
Diving into a no-nonsense explanation, Maxine elucidates the two foundational structures of venture funds—management companies and the standalone investing funds—and how funds of funds play into this ecosystem by investing in multiple funds. This episode shines a spotlight on the intricacies of fund growth, managerial sophistication, and the dynamic relationship between funds, funds of funds, and their limited partners (LPs). Cheryl probes into the motivations behind why LPs choose to invest in fund of funds, including access to top-tier funds and diversification that extends across emerging ventures.
Key Takeaways:A 'fund of funds' is an investment strategy where the fund invests in other venture capital funds rather than directly in companies.Most venture funds fail to return capital; however, emerging managers often are part of the top-performing funds, despite potential difficulty in scaling from one fund to the next.Institutions like pension and super funds, which frequently invest in funds of funds, face unique challenges such as VP clauses and monthly asset pricing pressures.Funds of funds can offer investors a lower-risk profile and a more diversified exposure to the venture capital market.There is a potential growth opportunity for fund-of-funds in Australia, which is currently a nascent market in this space.Notable Quotes:"If you invest alongside, say, CoVentures, and CoVentures has a fund of fund that's invested in them, what does that mean for the potential success of the company later on down the road?" - Cheryl Mack"Venture funds being an indexation of the underlying assets... Our success is driven by, you know, an outlier in our portfolio." - Maxine Minter"Emerging managers consistently are in the top ten performing funds of every single vintage." - Maxine Minter"The venture funds themselves, their returns perform on a power law curve. So there's only a handful of funds, venture funds, that will deliver outlier returns to their investors." - Maxine MinterSponsors:Thanks to our sponsors for helping to make this episode of First Cheque possible.
Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
Turo: Turo is the world's largest carsharing marketplace and it's the perfect app for travel.
Download the Turo app and book cars from $38/day. https://dayone.fm/turo

Episode Summary:In this insightful episode of First Cheque, hosts Cheryl Mack and Maxine Minter have a raw conversation with Elicia McDonald, a venture capital expert renowned for her remarkable work at Airtree Ventures. Elicia's holistic approach to early-stage investing and her deep commitment to nurturing founder relationships are at the forefront of this discussion.
Opening with an introduction that paints Elicia as a superhuman in her work-life balance, the episode delves into the intricacies of venture capital investing. With Elicia's insightful anecdotes and experiences, this podcast provides an intimate look at the dynamics of the VC world, particularly in uncovering what makes an early-stage investor successful. The conversation spans various subjects, including the principles of investment, fostering resilience, and the importance of embracing constant industry change.
About the Guest(s):Elicia McDonald is a prominent figure in the venture capital industry, mainly known for her work at Airtree Ventures, where she has made a significant impact through her skills in early-stage investing. Elicia is known for her keen ability to identify and invest in promising startups, contributing to various successful ventures. Regrow (formerly known as Fluorosat) is among her notable investments, reflecting her knack for spotting early potential in innovative companies. Besides her professional achievements, Elicia is recognised for her leadership in balancing family life with a demanding career, setting an empowering example for professionals, especially women in the tech industry.
Key Takeaways:Resilience and founder empathy are vital traits Elicia values in herself and the founders she invests in. Thorough decision-making and maintaining high-quality standards are pivotal points in Elicia's approach to investing and entrepreneurship. Building trusted relationships within the startup ecosystem significantly contributes to successful sourcing and working with founders. Parenthood and career balance is a personal challenge that Elicia navigated with bravery, setting a progressive example for others in the industry. The venture capital industry is marked by constant change, and embracing this dynamism is crucial for long-term success.Notable Quotes:"Life is 10% what happens to your 90% how you respond to it." - Reflexive insight on the importance of perspective. "Everything is a multi-shot game." - Maxine Minter on the long-term nature of venture investing.Resources:Elicia McDonald's LinkedIn profile Airtree Ventures website for more information on Elicia's investment firm.Listen in to this enlightening episode to hear Elicia McDonald's full insights on venture capital, founder relationships, and building resilience amid industry fluctuations. Stay tuned to First Cheque for more captivating discussions with leading figures shaping the tech and investment world.
Sponsors:Thanks to our sponsors for helping to make this episode of First Cheque possible.
Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
Turo: Turo is the world's largest carsharing marketplace and it's the perfect app for travel.
Download the Turo app and book cars from $38/day. https://dayone.fm/turo

Episode Summary:In the latest compelling episode, we delve into the investment philosophy and keen insights of Trang Nguyen, a trailblazing figure in venture capital. Nguyen shares her journey from placing an early bet on Tesla to her current efforts in redefining the startup ecosystem. She outlines her criteria for backing emerging fund managers and underscores the importance of founders who aim to build venture firms that transcend personal branding and leave a lasting impression.
Nguyen advocates for a platform approach where venture firms offer scalable services to startups, akin to corporate giants like Apple or Amazon. She argues this is crucial for a venture firm's sustainability and ability to scale, detailing why simply being a good investor isn't always enough. Moreover, Nguyen provides a peek into the future of startups, highlighting the potential for AI to revolutionize the way companies are founded and grown.
Hosted by Cheryl Mack & Maxine Minter, First Cheque is a Day One show. Day One is the podcast network dedicated to founders, investors, and operators.
About the Guest(s):Trang Nguyen is a pioneering investor with a bold approach to venture capital. She has made notable investments in transformative companies, including an early investment in Tesla. Trang is known for her long-term vision and commitment to supporting ambitious entrepreneurs in creating impactful venture firms and startups. Her work revolves around the principles of venture as a future-facing and influential asset class, embracing the role of technology in shaping investment paradigms.
Key Takeaways:Trang Nguyen made a pivotal early investment in Tesla, signifying her long-term investment mindset and dedication to visionary founders.Nguyen emphasizes the necessity for venture capital firms to build platforms that deliver scalable services to startups, not just make investments.The future startup landscape, according to Nguyen, will be heavily influenced by AI, possibly becoming co-founders alongside human entrepreneurs.Nguyen believes venture capital is deeply intertwined with technology and will continue to be a critical asset class for the foreseeable future.Despite current market sentiments, Nguyen is bullish on venture capital and its role in driving innovation across all sectors.Notable Quotes:"Venture is in every single asset class.""In order to identify the future of venture capital, ... you just need to go and look really stupid in front of a lot of people for a long period of time.""Everything you do is venture. It's just whether you recognize it."
Thanks to our sponsors for helping to make this episode of First Cheque possible:Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
Turo: Turo is the world's largest carsharing marketplace and it's the perfect app for travel. Download the Turo app and book cars from $38/day Download the Turo app and book cars from $38/day. https://dayone.fm/turo

Episode Summary:In this enlightening episode of the podcast, co-hosts Cheryl Mack and Maxine Minter engage with venture capital veteran Craig Blair to unpack the intricacies of successful early-stage investing. From sage wisdom to navigating the ever-evolving VC landscape, this conversation is a trove of insights for aspiring and seasoned investors alike.
Craig discusses his journey starting from an entrepreneurial venture in the Czech Republic to establishing AirTree Ventures, which has shaped the Australian investment scene. With a particular emphasis on strategic risk-taking and intuition in investment, the episode dissects the balance between data-driven decision-making and the human element in evaluating startups. Craig also shares his pivotal ‘big cajones’ moment—a personal story of bravery and recovery.
About the Guest(s):Craig Blair is a seasoned venture capitalist with an entrepreneurial background and a track record of successful investments in the tech industry. With a career spanning over two decades, Craig has become a distinguished figure in the VC market since 2002. He co-founded AirTree Ventures, a leading Australian venture capital fund dedicated to investing in visionary technology entrepreneurs. With his expertise, Craig has developed a reputation for making strategic and often contrarian investment decisions that have significantly impacted the Australian ecosystem. His risk-taking prowess isn't limited to investments though; he's also known for engaging in adventurous activities such as ocean sailing.
Key Takeaways:A founding partner of AirTree Ventures, Craig Blair emphasizes the importance of being contrarian in investment decisions.The discussion reveals the significance of developing investment theses and being prepared with better information about verticals or opportunities.Avoiding the herd mentality and challenging personal biases are vital for successful VC investments, underscoring the need for continuous learning.Craig shares a personal anecdote of tenacity, underlining the importance of dedication and resilience in the face of adversity.Discipline surrounding fund size and alignment with LPs helps maintain investment theses, ensuring the sustainability of both venture funds and startups.Notable Quotes:"If everyone in VC, for example, is going into something right now, I don't want to be there. I want to be somewhere outside that.""It's a humbling experience to see a company and be like, oh, it's not going to work for these reasons, or it hasn't worked in the past, and therefore it's not going to work again in the future, and then it really works in the future.""It's very dangerous if you start morphing your investment plan to suit your LPs.""You might not work before, but why would it work now?""I've done a lot of adventurous things. I do a lot in my previous...well, probably still do a lot of crazy stuff. I love risk."
Thanks to our sponsors for helping to make this episode of First Cheque possible:Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
Turo: Turo is the world's largest carsharing marketplace and it's the perfect app for travel. Download the Turo app and book cars from $38/day Download the Turo app and book cars from $38/day. https://dayone.fm/turo

Summary:In this insightful episode of the podcast, listeners are introduced to the world of venture capital through the lens of Sam Wong, a seasoned Partner at Blackbird Ventures. Delving into her journey from the early investments to scaling venture funds across markets, this conversation provides an intimate look at what it means to both contribute to and grow within a startup ecosystem. Sam shares her experiences in identifying alpha opportunities, scaling venture fund operations, and the unique challenges and triumphs found in burgeoning markets like New Zealand.
As the podcast unfolds, Sam recalls her first investment and the lessons learned from its considerable return, offering a gateway to discussions on angel investing, ecosystem building, and the dedication needed to manage venture funds successfully. She provides a clearer understanding of the nuanced journey from fund one to the subsequent funds, highlighting the responsibilities of fund managers to their LPs and the critical considerations leading up to successful fund raises. This episode is not just about past decisions but also the leveraging of opportunities, strategizing for long-term outcomes, and the bold moves that define a venture capital career.
Key Takeaways:The transition from angel investing to venture capital management involves long-term commitment and strategic relationship building with founders and LPs.The phenomenon of market asymmetry can provide disproportionate access to quality deals, creating opportunities for generating alpha in venture capital investments.Scaling a venture fund from one iteration to the next requires more than historical performance; it necessitates team growth, market positioning, and an alignment with LP expectations.Early-stage ecosystems, like New Zealand's, possess unique characteristics such as strong vertical SaaS and deep tech capabilities, influenced by successful local companies and founder backgrounds.Personal conviction and the ability to take calculated risks, as demonstrated by Sam's decision to relocate and spearhead Blackbird's New Zealand fund, are essential traits for success in venture capital.
Notable Quotes:"I think that [small checks] are actually more about the relationship. And can a founder be bothered giving you a line on their cap table when the money doesn't even cover a week of Runway?" - Sam Wong"You can't just profit from the ecosystem, you have to take responsibility for building it too, and building it in a certain way." - Sam Wong"That asymmetry of capital supply to founder talent is what creates alpha opportunities, right? And you just don't get many of those in a venture lifetime." - Sam Wong"It didn't really take very long before I only grew in conviction that there was a sort of Australia 2013 esque opportunity where you had...a real scarcity of quality options for capital" - Sam Wong"I think starting New Zealand has probably been the biggest, big cojones thing because I felt it at the time too. It did feel very risky at the time." - Sam Wong
Our SupportersThanks to our sponsors for helping to make this episode of First Cheque possible.
Scendar: Scendar is the OG startup accounting firm in Australia. Free 1-hour consultation about your Business' growth plans and finance needs. https://dayone.fm/scendar
Turo: Turo is the world's largest carsharing marketplace and it's the perfect app for travel. Download the Turo app and book cars from $38/day Download the Turo app and book cars from $38/day. https://dayone.fm/turo