Startmate is a Sydney-based, mentor-driven seed fund that invests in Internet startups chasing large global markets with exceptional, technical founders.

Why do Startmate? Startmate will help you focus by offering the support of a mentor network that has built online businesses before. We will help you attract and win your first customers and create as many early stage financing options as we can.

The formal part of the investment is a five month program. Through weekly lunches, dinners and other events, mentors will help the founders begin the search for a business model and win their first customers. After the program we will still be engaged shareholders and at your service.

As well, you will be flown to Silicon Valley and introduced to as many useful people through the networks of Startmate mentors and fans.

Startmate includes two demo days, one in Sydney and one in Silicon Valley, in front of early stage investors. The demo days are designed to help teams explore capital raising options.

Legal advice from DLA Piper Australia for the formation of the company and initial investment ensure you won’t shoot yourself in the foot for future investors.

The $50,000 investment is for 7.5% of each startup’s equity, which values the companies at a post-money valuation of $666k (heh). Because of this, only firms who are getting started or who have raised little, if no, outside capital are likely to be appropriate. There isn’t any negotiation over the standard terms and these choices mean we are limiting our efforts to only the earliest of stage companies.

Our aim of the program is to help our investments win their initial customers and gain traction. And following that,  to pursue, if the startups wish, further financing either in Australia or the US.

We chose the valuation terms after looking at comparable transactions at programs in the US like Techstars and y-combinator. If we can’t increase your chances by an additional 7.5% or if the matter is even close, then we will have failed anyway.