Australia-based investment group Sydney Angels will be investing a total of $2.4 million in 3 tech startups – Trendspek, JRNY and Cogsworth. According to Techboard, in 2019, total funding captured was $7.356 billion that was spread over 844 funding events. A 76% increase in value was seen as compared to 2018 levels. In 2018, 724 startup funding events occurred that totalled to $4.175 billion [1]. This year, despite the pandemic hitting the world, Sydney Angels investment group has not stopped itself from recognizing potential technology startups and investing in their growth. Until now, Sydney Angels has made more than 50 strategic investments including the 3 startups fundings they announced on May 26th 2020.
About the 3 tech startups
The three ventures that received the generous funding from Sydney Angels:
- Trendspek – Trendspek is a Sydney-based software startup that is dedicated to converting drone footages into 3D virtual digital models for inspection. They majorly convert footages of infrastructure that’s usually tough to inspect for maintenance.
- Cogsworth – Cogsworth is an Australia-based smart appointment scheduling/booking platform. The platform can be used to automate the payment process, appointments, add personalised admin features and sync staff schedule and calendars.
- JRNY – JRNY is a New Zealand-based startup and the first investment that Sydney has made out of Australia. JRNY is an Insurance Customer Journey Platform for insurance providers that helps them convert more customers seamlessly. CEO of JRNY, Michael Lovegrove said they could have managed to gain more funding back home in New Zealand, but chose Sydney Angels to leverage their experience, assistance and expertise.
The investment strategy of the 3 tech startups
Co-founder & CEO Derek Feebrey of Trendspek said that the capital will allow them to grow their tech development team and invest in customer support. It will also be used to launch partnerships in Australia, Europe and the US. He added that the ability to complete an inspection remotely on time will reduce a company’s operational risk and given the circumstances of the pandemic, it’s simply a necessity.
Lovegrove from JRNY said that the funding they received from Sydney Angels will be used to hire a top-notch team. It will also fund the company’s market expansion plan in Australia and Singapore. Cogsworth also plans to invest in expanding their team and their business in Australia and other countries with time.
Due to the pandemic and the tragic events that followed, there’s a lot of speculation around whether early-stage tech startups will get the funding needed to grow or not. Adrian Bunter, a committee member of Sydney Angels, said that these three investments are in line with Sydney Angels’ historic investment amount ranging between $200-600k per funding. He added that this demonstrates funding for tech startups with vision and growth is still on the table.
Tech startups are a crucial sector of the Australian economy and will play a critical role in driving back a significant portion of Australia’s economic recovery. It’s more imperative than ever to invest in tech startups with potential for their growth and survival. Even in the first quarter of 2020, Australian startups and young tech companies have successfully secured $1.75 billion in funding from 170 events [2]. It is good to know that investment groups like Sydney Angels are willing to invest in tech startups that are ready to thrive and can make a difference with its products.
SEE ALSO: https://itmunch.com/republic-obtains-fig-adding-games-to-its-startup-crowdfunding-program/
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Sources
[1] Techboard (2019) “Funding Report December Q 2019 Incorporating Commentary on 2019 Funding” [Online] available from: https://techboard.com.au/techboards-latest-funding-report-reveals-startup-and-tech-funding-increased-massively-from-2018-to-2019/ [accessed May 2020]
[2] Techboard (2020) “Funding Report March Q 2020, Including April 2020 Supplement” [Online] Available from: https://techboard.com.au/startup-funding-levels-at-record-highs-into-april-but-has-the-covid-19-induced-decline-of-startup-funding-begun/ [accessed May 2020]
