Eric Chan B. G., Opalesque Geneva:
A thesis-driven, high-conviction venture capitalist firm that focuses on technology trends that enhance the way society works, learns and lives, is launching a new fund.
Track record
Since 2013, Aura Ventures, which is part of Aura Group, has partnered with 22 companies across Australia and New Zealand to help create over AU$1bn (US$ 663m) in market value.
More than AU$55m has been deployed across a range of industries to build a portfolio value that is now valued at more than AU$95m and also returned AU$27m to investors to date.
The team have delivered top quartile returns (1), generating an average TVPI 2.1x and DPI of 0.74x across Fund Zero and Fund One (2). Fund Two is expected to be fully deployed (but for follow-on reserves) by late 2024.
Thesis and business model-driven
Aura Ventures is a high-conviction investor looking to take positions in high-growth start-ups across their most critical phases, with a focus on seed, that is, when a company is showing early signs of user traction. Their typical ticket size ranges from AU$0.75m to AU$ 2.5m.
Eric Chan, co-founder and managing partner explains ‘As thesis-driven investors, we conduct in-depth analysis on multiple industries to identify structural tail-winds that can support strong growth rates.”
“Once we have the conviction that a company is solving a meaningful and important problem, we will then work closely with its founders, talk to customers, review its product and assess its unit economics to ensure the company is able to grow sustainably. Being high conviction means we build smaller portfolios but spend extra time on our investment process and allocate meaningful resources to work with our founders post-investment.”
Eric Chan will present at the upcoming webinar, Small Managers – BIG ALPHA Episode 14, on March 26 (details below).
Aura Ventures Fund III‘s core focus will be on B2B software & marketplaces – not deep-tech, biotech and hardware-focused companies. According to Eric Chan, B2B software and marketplace-based businesses have several important characteristics that make them attractive investments.
“B2B software companies typically have superior unit economics to B2C business models,” he tells Opalesque. “Average revenues per user are higher and churn rates are lower, which results in a much better customer lifetime value. Software that addresses a specific organisation need or pain point is also well placed to resonate with their customers and achieve product market fit.”
“Marketplaces can target either consumers or business customers – but in both cases, once the adequate depth of the marketplace is built, you get the powerful benefits of network effects, which can provide a strong defensibility.”
The firm has seeded well-known Australian start-ups; Shippit – which aggregates e-commerce fulfilment, Catapult – which supplies cutting-edge sports technology, and Gamurs – a gaming, esports, and entertainment media network.
This year, Aura will seek to raise AU$100m for the Aura Ventures Fund III, with investments being placed over three to five years.
Aura Group is a financial services firm headquartered in Singapore, founded in 2009, with more than AU$1bn (as of 31 January 2024) under advice and management. It was awarded the ‘Best Wealth and Fund Management Company’ and ‘Client Service Excellence Award’ at the 2021, 2020 and 2019 International Finance Awards.
Trends in VC funding down-under
Australia and New Zealand have been steadily attracting investment, fostering innovation, and nurturing entrepreneurial talent, reports privateequitylist.com. The key trends in Australian VC include a growing interest in clean energy and sustainability start-ups, increased investment in biotech and health tech, and an expansion of angel investor networks to support early-stage start-ups. In New Zealand, they include a strong emphasis on sustainable and regenerative agriculture technology, more investments in Maori-led start-ups, and increased government support for the tech sector.
1) Top quartile status based on Cambridge Associate, Australia Private Equity and Venture Capital Benchmarks (Q3 2023).
2) Figures as of 31 December 2023. Aggregated gross realised and unrealised performance across Founding Portfolio, Aura Venture Fund, ILP and Aura Venture Fund II, ILP. Past performance is not a reliable indicator of future performance.
Upcoming webinar
Small Managers – BIG ALPHA Episode 14
Episode 14 of this groundbreaking interactive webinar series presents you with another carefully screened panel of investment managers worth looking into.
Who:
o Christian D’Urso, TradeWinds Asset Management
o David Nazar, Ironshield Capital Management
o Eric Chan, Aura Group
o Thomas Bleimuth, Anbruggen Capital
When: Tuesday, March 26th, 2024, at 11 am ET (3 pm GMT, 4 pm CET, 6 pm Riyadh, 7 pm Dubai)
Free registration here: https://www.opalesque.com/webinar/
