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Latest update for the Sydney Angels Sidecar Fund 

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Sydney Angels Sidecar Fund 

Sydney Angels Deal Pipeline

The Sydney Angels held a regular screening meeting on Tuesday 14 August with 6 startups presenting. Three of these startups, ModaUnica, Leasate and Split It were selected to progress to the next Sydney Angels members' meeting on Tuesday 28 August.

Currently, the Fund's investment committee is conducting due diligence on 2 potential investments. Further information on these deals will follow in the next update.

New Investment - Controlabill

  • the Sydney Angels Sidecar Fund has made a $300K investment in Controlabill, matching a $300K commitment from a number of individual Sydney Angels.
  • the investment was made at a pre-money valuation of $1.8 million.

Controlabill:
  • building a game-changing direct debit authority management service in a global market hungry for innovative payment solutions.
  • service dramatically reduces cost, time & complexity experienced by billers in capturing and managing customers' direct debit authorities. 
  • charges $2 per direct debit authority created or changed and a $1 annual fee/authority - this represents a 10x saving on current costs incurred by billers. Direct debits make up 20% of the Australian billing market with 50 million direct debit authorities in place. There are 7.5 million new & 15 million modified direct debit authorities created each year. The US direct debit authority market is 12x the size of the Australian market and Europe is more than 3x the US market. 
  • targets major billers with a cost saving & customer service business case & banks with a customer service revenue model. 

Second Round Investment - Bubble Gum Interactive (BGI)

 

  • The Sydney Angels Sidecar Fund recently invested $300K in Bubble Gum Interactive's secound round capital raise at a pre-money valuation of $9 million. The Fund originally invested $200K in BGIs first round capital raise at a pre-money valuation of $3 million.




From BGI's Press Release

  • The funds will be used to scale operations including bringing on board new key talent, cementing global distribution programs and expanding marketing as the business races towards its next milestones. A percentage will also be used to help accelerate development of new products and services including Little Space Heroes games for mobile devices, animated cartoons and global licensing program development.
  • Phil Mason, CEO said “Little Space Heroes is experiencing incredible growth with tens of thousands of kids playing every day from over 80 countries. Closing our second round so quickly was a dream run, with plenty of capital to invest in rapidly establishing Little Space Heroes as the number 1 virtual universe for kids and families. In addition to the capital, we’re very pleased to have brought on board investors with significant experience in gaming, entertainment and technology sectors.”
  • The new round saw key investors from Bubble Gum’s previous raise continuing their investments, with new money from a mix of angel and VC’s from Australia, Asia, Europe and the USA including Sydney Angels Sidecar Fund, Melbourne based Starfish Ventures and Tokyo based IT-Farm Corporation. Sizhao Yang, co-creator of Farmville and respected Silicon Valley investor Bill Tai also invested in Bubble Gum’s adventures.
  • Bill Tai said, “Very excited to add fuel to the rocket that is Little Space Heroes.  This is a team that has done it before, and I’ve been very impressed with their product execution and user traction.  Their organic user growth has been phenomenal and this financing should help Bubble Gum step on the accelerator.
  • Nick Peace, Investment Director at Starfish Ventures said, “We recognised the great opportunity at Bubble Gum for the kids games space. We were very impressed at their technological innovation around security and safety, so we’re not surprised they’re the most highly accredited game on offer for kids.

Business Update - Bubble Gum Interactive (BGI)




Highlights
  1. Little Space Heroes has passed 500,000 registrations and expect to reach in excess of 700,000 players by end August
  2. Sales conversion is starting to increase in Australia, US and UK markets 
  3. Nickelodeon Addicting Games distribution is now live and driving North American traffic
  4. Little Space Heroes was awarded 2012 Mom’s Choice Silver Medal for excellence
  5. Exciting new affiliate deal discussions are underway with Mini-clip and Terra
  6. Virtual world engines have undergone a successful round of optimisation to increase accessibility and player experience, and also in readiness for porting to tablets later this year 
  7. Cartoon trailer production is now in full swing in preparation for MIPJunior in October
Market traction and growth
  • Rapid growth in June and July saw us pass the 500,000 registered users milestone with organic growth contributing over 30% of our monthly acquisition totals
  • Affiliate and direct marketing activity is projected to add 100,000+ additional Tier 1 users per month
  • Premium member penetration of base is currently >3% of Tier 1 countries and growing (USA, UK, Canada, Australia, NZ, Western Europe) and growing as freebase grows towards catalyst point
  • ARPU for Tier 1 subscribers currently stands at $36 based on 6 months of premium memberships being available since launching in January 2012
  • BGI expect to see a sales bump with up and coming premium member centric parties including the  ‘Super Heroes’ party to take place later this month (during peak Northern Hemisphere summer play periods)
  • Sales in Tier 2 markets are also expected to grow with internationalisation complete and additional payment methods from Matchmove
Business Development and Distribution
  • Our Nickelodeon Addicting Games distribution agreement is now live and driving North American traffic
  • We are currently in negotiations with Mini-clip with hopes of a major affiliate deal for September
  • Negotiations are also underway with Terra in South America, and looking super positive pending further discussions this week
  • The potential new affiliate deals with Mini-clip and Terra will mean substantial marketing uplift in North American, UK and South American markets
  • The company is also in the final stages of the long-awaited Turner deal for EMEA, with a contract expected in the next fortnight.
Marketing and PR
Brand Licensing Development
  • Licensing interest in the property/ brand has been growing, with Leigh meeting Wild Pumpkin last week who manage Rovio (Angry Birds) and Skylanders business in Australasia
  • The promotional trailer for MIPJunior in Cannes in October is in full production and looking awesome, please enjoy the attached key shots
  • Kidscreen Magazine ran a short article about the company’s cartoon plans, which has been great press leading up to Cannes
  • Mobile game development continues with some exciting releases to be announced in the coming months.

Upcoming Members Meetings

28 August
30 October
11 December


 


 

 

 

 


 



 

 

 

 
 
 
 

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