Scale Venture Fund 1
The Fund is an innovative investment vehicle allows investors to pre-commit funds to be deployed on a rolling basis. (For Wholesale Investors Only)
Scale Venture Fund 1 is our newest product - a revolutionary rolling fund that provides diversification into women-led startups.
Scale Venture Fund 1 innovative investment vehicle allows investors to pre-commit funds to be deployed on a rolling basis. Investors in the Fund contribute on an annual basis to gain access to the next 10 deals sourced, screened, and executed by Scale Investors. Each deal will be approved at the Investment Committee level, comprising a collective of experienced venture and angel Investors.
Scale Venture Fund 1 is a rolling fund, unlike any other in Australia. From the point you pre-commit, you gain access to a minimum of 10 deals that are pre-screened by our investment team and selected by our investment committee. Investors commit $100,000 of their private capital or more.
Scale Venture Fund 1 is a differentiated, flexible way of investing, designed to save you time and overheads. We manage the fund on GXE.com, giving you increased security, management efficiencies and performance insights.
The gender funding gap in venture capital is a significant issue, with less than 3% of funding going to women founders. Although there are positive signs emerging, such as record levels of women's participation in venture deals, the share of total funding dollars to women has dropped, and is even lower in Australia than the global average. Our vision is to create a world where gender does not limit access to capital, and to correct the inequity in venture funding allocation.
Investing in diverse founding teams is not only the right thing to do, but the smart thing to do. There is consistent data to support the findings that startups founded and co-founded by women perform better over time, with higher cumulative revenues and overall higher returns on investment. This presents a compelling business case for funding diverse founders as, put simply, they outperform. Additionally, gender-diverse teams have the potential to uncover unmet needs and large addressable markets with their unique perspectives, allowing investors to gain access to opportunities not seen in other venture segments.
The social, economic and environmental implications of investing into women-led businesses are significant. Research by BCG outlines equal gender participation by entrepreneurs could boost the global GDP, adding AUD$5 trillion to the global economy. Women-led companies often prioritise corporate social responsibility initiatives, highlighting the potential for gender-lens investing to drive positive social and environmental impact alongside return on investment.
Scale Venture Fund 1 - Overview
Scale Venture Fund 1 has been designed in response to the demand expressed by our investor community and the venture ecosystem for a gender-lens financial product that offers flexibility, diversification, convenient management, and aims to offer strong returns. This section outlines how the Scale Venture Fund 1 successfully meets these requirements.
The Fund's objective is long term capital appreciation, generating returns to Investors that are superior to those earned on equity or equity-related investments with comparable risk profiles.
Specifically, while no guarantee of performance is provided, the Fund will seek to provide Investors with a minimum return (after fees, expenses and carried interest, and before tax) of 25% IRR. This is a target only and no guarantee of performance is provided. This assumes a total fund size of $10m invested within 5 years.
Overall investment thesis and strategy Scale Investors is bridging the entrepreneurial investment gender-gap and is committed to investing in outstanding women-led startups at the pre-seed and seed stage. Scale Investors’ thesis is that this makes profound sense from both an impact and a return on investment (ROI) perspective.
Extensive and consistent data support that startups founded and co-founded by women tend to outperform their counterparts over time. These companies achieve higher cumulative revenues and deliver overall higher returns on investment. By investing in gender-diverse founders, we aim to capitalise on this compelling business case, leveraging the proven track record of their success.
Moreover, we believe that gender-diverse teams have a unique ability to uncover unmet needs and identify large addressable markets that may not be visible in other venture segments. The perspectives and experiences of diverse founders enable them to identify opportunities that might be overlooked by homogeneous teams. By investing in these founders, we provide ourselves and our investors with access to these untapped opportunities, enhancing our potential for strong investment returns.
In addition to the financial advantages, investing in women-led businesses carries substantial social, economic, and environmental implications. Research conducted by BCG reveals that achieving equal gender participation by entrepreneurs could potentially boost the global GDP by an estimated US$5 trillion. This demonstrates the immense economic value that can be unlocked by supporting women in entrepreneurship.
Furthermore, women-led companies are more likely to prioritise corporate social responsibility initiatives. By investing in gender-diverse ventures, we have the opportunity to drive positive social and environmental impact through these companies' commitment to social responsibility. Gender-lens investing has the potential to promote sustainability, diversity, and equality, reflecting a fair and inclusive society.
At Scale Investors, our investment thesis centres around correcting the gender funding gap and empowering diverse founders. By doing so, we believe we can achieve strong financial performance, gain access to untapped markets, and contribute to positive social, economic, and environmental outcomes and create a sustainable, inclusive future.
Founded by visionary women in 2013, Scale Investors is bridging the entrepreneurial investment gender-gap. Our network provides sophisticated angel investors access to bolster innovative, gender-diverse teams in early stage startups. We are committed to investing in women at the pre-seed and seed stage. Our community is grounded in collaboration alongside our experienced team, to achieve our ultimate mission to lead the future of diverse investment.
The Investment Team
The role of Scale Investors’ investment team will be to source, screen and assess deals for investment by the Fund. The investment team will identify potential investment opportunities through a variety of channels, such as education, networks, attending industry events, and through strong co-investor relationship referrals.
Once identified, assuming an opportunity meets mandate requirements, the investment team will conduct a detailed founder interview or series of interviews. Where a potential investment opportunity is then identified, a robust due diligence process will be conducted. The investment team will then make a recommendation to the Investment Committee.
The Investment Committee has the ultimate decision-making authority and will approve or reject deals for investment by the Fund. Following investment, the investment team will then be responsible for monitoring the performance of that portfolio company and will provide ongoing advice and support across the portfolio of investments.
The investment team is made up of Chelsea Newell, Samar Mcheileh and Roo Harris.
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Chelsea Newell is the current co-CEO of Scale Investors, a position she attained after joining the company as the Investment Manager in April 2018. With over 10 years in the financial services industry, Chelsea has emerged as a leading authority in managing founder and investor relationships.
Prior to her tenure at Scale Investors, Chelsea made significant contributions during her three-year tenure as Business Manager at JBWere. In this role, she worked directly with the General Managers of Advice and Products and Markets, showcasing her ability to drive strategic initiatives and collaborate with key stakeholders to achieve tangible results.
Chelsea's international experience further enhances her expertise, having spent six years in London working in wealth management and brokerage businesses. During her time there, she excelled in roles such as Corporate Access and Business Manager, honing her skills and ensuring exceptional client experiences.
Chelsea's dedication to fostering the growth of the Australian early-stage ecosystem is evident through her active involvement in the community where she regularly presents on relevant topics, sharing her insights and expertise with her comprehensive understanding of managing founder and investor relationships and her passion for fostering innovation in the early-stage ecosystem.
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Samar Mcheileh is a highly accomplished professional with a strong background in financial services. She currently serves as the co-CEO at Scale Investors, a position she began in early 2021, after starting with the firm in 2019. With over 15 years of experience in the industry, Samar has held various executive roles at JBWere, where she demonstrated her expertise across many areas.
During her tenure at JBWere, Samar excelled in roles such as Operations, where she played a pivotal role in overseeing key operational functions. She also led a transformative AU$150m project, showcasing her strategic abilities and keen eye for driving positive change.
Additionally, Samar gained valuable experience working on the Markets Desk and served as the Chief of Staff to the CEO, further enhancing her leadership capabilities.
Samar's diverse professional journey extends beyond the financial sector. She ventured into the international market by working in London for a Hedge Fund Publication. Furthermore, she embarked on her career in Logistics, where she specialised in exporting scrap metal to Southeast Asia. This unique background adds a valuable perspective to her financial expertise.
Passionate about fostering the growth of the Australian early-stage ecosystem, Samar actively contributes to the industry. Her involvement as part of the first 100 women Startmate Fellowship in Spring 2020 showcases her commitment to supporting women entrepreneurs and emerging ventures.
Samar's dedication to making a positive impact extends to her volunteer work. She served on the board and Finance committee of YWCA Australia, a non-profit organisation focused on young women's leadership and housing, for five years until January 2021. Currently, she volunteers as a finance committee member for inTouch, a multicultural centre combating family violence.
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Commencing her career at what is now Allens Linklaters, Roo Harris brings extensive experience as an international corporate and commercial lawyer to her role at Scale Investors. With over 15 years of practice, Roo developed a strong foundation in advising on a wide range of deals, primarily focused on the Middle East.
Her areas of expertise include hospitality, sports, education, communications, media, and technology.
During a three-year engagement with the private family of a member of Qatar's ruling family, Roo was responsible for local and cross-border investments and transactions, including venture deals. In this role, Roo gained invaluable insights into the intricacies of investment strategies and deal structuring.
She then began working independently with project founders, providing them with guidance to become investment-ready and assisting in capital sourcing. During this time, Roo also qualified as a coach and began working with women executives seeking to transition from corporate jobs to pursue entrepreneurial or creative ventures.
Roo's dedication to making a positive impact extends beyond her professional endeavours. She actively contributes to the community as a board member of Aspergers Victoria, a Not-for-Profit organisation.
Additionally, she serves on the board of a private investment company with AU$250m under management, which boasts a diverse portfolio of assets, including Australia's largest integrated forestry and timber processing company dedicated to sustainable softwoods.
Roo's involvement in these organisations showcases her commitment to driving sustainable and socially responsible initiatives.
Roo is the Chief Investment Officer at Scale Investors and was previously the Investment Manager.
Scale Investors has assembled an experienced Investment Committee, comprised of Melissa Widner, Tracie Clark, Neil Stanford and Phil Dolan.
With extensive experience in venture investing, successful track records, first-hand founder experience, expertise in supporting emerging managers, and commitment to driving gender diversity in early stage ventures, this inaugural committee brings immense value to the Scaling Women’s Fund.
CEO of Lighter Capital
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Former Managing Director, NAB Ventures
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Former partner, SeaPoint ventures (US VC Active angel investor; portfolio of 40 startups)
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2 x founder
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10 and 15X return to investors
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Co-founder and Chair of Heads Over Heels
Head of Wealth, Carbon Group
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Active angel investor
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Former Chair of Perth Angels
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Former Macquarie Investment Banker
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2 x founder successful financial services companies
Executive at Breakthrough Victoria
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Former head of Private Equity and VC, Hostplus
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Pioneered venture investing at Hostplus in 2014
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Former asset consultant, JANA Investment Advisers
Executive Director Melbourne University - Future of Business
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Experienced financial services executive
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Experienced private equity investor
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15+ years heading up Macquarie Investment Research
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Senior management of educational institutions, especially Business Schools. PhD finance, economics, accounting and statistics at Stanford
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