Melbourne-based accelerator AngelCube has announced it is doubling the size of its investment and reducing the amount of equity it takes in return.
The accelerator, which launched in 2011, will offer its 2015 intake of startups $40,000 in funding in exchange for 8% equity. Until now, AngelCube had been offering $20,000 in exchange for 10% equity.
AngelCube co-founder Nathan Sampimon says the move is a reaction to the Australian startup ecosystem starting to mature.
“It’s been amazing to watch the ecosystem grow and the maturity of startups grow with it,” he said.
“Times are changing. There is more of an ability to make better use of the $40,000 than there was in the early days. Starting a company has never been cheaper, but in order to stand out from the crowd, more needs to be spent on marketing and getting investor ready.”
Sampimon also pointed to the program’s sudden inability to access Business Victoria’s export grants program. In the past the program had provided up to $10,000 to AngelCube startups which would help them pay for a trip to attend trade shows the United States, a key part of the program.
Twenty-three startups have gone through the AngelCube program, with more than half receiving follow-on funding. Recently, 2014 AngelCube grads Class, a hotel booking app, and Docket Group, a mobile platform that gamifies sales and customer engagement for brick-and-mortar retailers, closed bridging funding rounds.
While the terms of investment have changed, AngelCube’s focus has not. Sampimon says the increased funding is not designed to open the program up to another market.
“We’re still all about empowering early-stage startups and helping them market a go of it,” he said.
“There are enough talented entrepreneurs and developers in this country for 10 times the amount of startups we have. The value of programs such as ours is in giving people the confidence to follow their dreams. The money makes sure they can focus 100% of their efforts on growing a company, without worrying about next month’s rent.”
Applications for AngelCube’s 2015 intake close at midnight on Sunday May 10. To apply visit https://angelcube.com.
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Kye began his career at a Fairfax daily on the North-West Coast of Tasmania. He has since taken his belongings, and keen interest in technology, to Melbourne. He has a bachelor of Arts majoring in Political Science from the University of Tasmania and a Graduate Diploma in Journalism from RMIT University.
