Some of the US$ 125 million ($162 million) will be put into 240 global startups as co-investment between the partners to build them up.
So what does it all mean?
The startups that are part of BlueChilli cohort will get up to $500,000 follow-on funding from both Hatcher+ and BlueChili when they raise capital upon completion of the program.
All these funding is on top of the $25,000 initial funding the accelerator provides in exchange for 15% equity of their startup.
The two x 12-week accelerator programme provides idea stage startups with access to a specialist team who help them validate and build their product along with working on pilots.
After the first six months, the startups can continue as part of the BlueChilli community with opportunities to be part of alumni offers, continued mentoring and business pitching events.
This is definitely good news for the early stage startups, and according to BlueChilli, this ‘venture building’ model will overcome a significant hurdle for founders.
Over 90% of the Australian population ‘don’t code’, this model ensures that founders with great ideas and business acumen don’t miss out on the opportunity to build impactful, investible tech startups.
The perk doesn’t stop there as well.
BlueChilli startups will also be eligible for Early Stage Innovation Company (ESIC) status, which makes it easier to raise capital in the angel round.
And we all know that that is one of the most difficult time periods for early-stage startups.
Under the ESIC program, investors who invest in BlueChilli’s graduated startups will receive an immediate tax decisions and capital gains tax exemptions.
BlueChilli is the first accelerator in Australia to be awarded this status by the Australian Taxation Office (ATO).
According to Dynamic Business, founder and CEO of BlueChilli Sebastien Eckersley-Maslin said that their role is to source, build and invest in the 240 startups starting from April.
Also stating that the investment from Hatcher+ will enable them to “invest in the engineers, the creatives, the UX professionals and the product people necessary to build all 240 companies.”
Also, they have to look for 12,000 entrepreneurs to find the best 240, which also means that BlueChilli will be venturing overseas and expanding their current programs like SheStarts.
So I say, get your resumes ready.
Long time coming for BlueChilli
BlueChilli has been redefining their ‘venture builder’ model for six years, and Eckersley-Maslin said this partnership is a breakthrough that they have been waiting for.
“The BlueChilli team is really excited about the partnership with Hatcher+. We’ve been refining our model for six years, and this breakthrough means our startups do not have to fund any of the initial development themselves, and our team can have a 100% focus on a Founder First approach.
“The partnership effectively underwrites the costs of each cohort, including the development of the technology products for each startup, which previously startups had to fund on a cost-recovery basis. This allows the BlueChilli team to work with the startups at no cost to the founders and has shown significant improvements in speed of development and iterating towards product-market fit.”
The partnership seems rosy and perfect as well.
Eckersley-Maslin is really pleased about the partnership with Hatcher+.
“Its global network across 168 countries, combined with a solid track record of investments and focus on redefining the practice of venture investing, aligns well with our global ambitions,” he said.
Hatcher+ is a data-driven venture firm that uses AI and machine learning-based technologies to identify early-stage opportunities in partnership with leading accelerators and investors worldwide.
John Sharp, partner and co-founder at Hatcher+, said the strategy for the Hatcher+ H2 fund has benefited from insights gained since launching the first Hatcher fund in Singapore in 2015 and focuses on investing in companies as early as possible, which is why a partner like BlueChilli is an excellent fit.
“We seek to partner with the best accelerators around the world – the sector champions and geographic champions. We are looking forward to working with BlueChilli as we believe their approach is the best in the region and can help us achieve our vision of investing $US125million into top startups over the next three years,” Sharp said.
BlueChilli has already invested in 113 startups since launching in 2011 and runs several leading startup accelerators, including its current programs SheStarts and CityConnect.
And they plan to announce the first new countries in the coming months.
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