Systemisation and Pattern Recognition

A process designed to identify and capitalise on future innovation early

Sourcing

Sourcing is most effective when deal flow is both inbound and outbound, and represents large volume as well as a high quality. CP Ventures enjoys extensive inbound deal flow both in Australia and internationally, especially the US, where the majority of unicorns are still born.

We also do extensive outbound monitoring and outreach to companies we identify as potentially disruptive.

Screening

Our screening process begins with leveraging our extensive experience from reviewing tens of thousands of startups, while making over 100 personal startup and fund investments, located throughout the world. We’ve also invested in numerous Unicorns so we know what they look like before it’s obvious. 

When we think a startup looks highly interesting and meets CP Ventures investment thematic, we use a proprietary scoring system and extensive, yet highly efficient, screening and due diligence process. 

Our scoring system reviews 18 key areas of the business, with a heavy weighting on three key areas: Problem, Solution & Team

Value Add

We have created a flexible model that can scale from just regular contact through to seconding personnel into a portfolio company for short bursts to help accelerate their growth. The areas we can assist are:

  • Capital raising – strategy, pitch deck advice, investors. We have invested alongside SoftBank, Sequoia, AME Cloud, DFJ, Accel, Plug & Play and many others.
  • HR services – entire recruitment process, interviewing, on-boarding process, performance reviews and so on.
  • General strategy and tech – the partners are all founders first, as well as having worked in senior positions in the corporate world. We also have deep CTO and tech scaling expertise.

Portfolio Structuring

High performance is not just about picking winners, but how a fund and portfolio is constructed. CP Ventures has opted to focus on high performance over building the next mega fund. We have implemented the following portfolio attributes to help ensure we achieve outsized returns for our investors:

  • Seed stage – Higher returns are possible the earlier an investment is made.
  • Conviction style – Focus efforts on investing earlier rather than diluting with larger checks as valuations rise.
  • Boutique size – Keeping the fund small so that Seed based checks are meaningful on the fund’s performance.
  • Vintage model – Make investor money work faster by conducting all first round investments within 12 months, rather than the usual 4 years.
  • Multi-sector – Investments spread across multiple sectors to capture multiple growth trends and diversify.
  • International – Investing where the best opportunities exist, especially the US where the majority of western denominated Unicorns are still created.
  • Thematic – Future category winners focused on solving enormous hard market problems are more likely to yield outsized returns.
  • Power Law – A clear understanding that high performing VC funds exhibit a power law style return and optimised to take advantage of this. 
  • Secret sauce – Investment at the Seed stage often allows for much more flexibility than later stages, and we’ve developed unique investment and follow-on structuring that can improve our investment returns significantly, while also helping our startups. 

Access high returns in some of the world’s most exciting tech startups

Sophisticated and professional investors can invest in Fund 2, the Global 2020 Fund.

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