Hello, friends of the Atlas,
This months the Atlas team announced the private launch of our Atlas Nano Fund One to help build the next green tech cities in emerging markets! We wanted to share with you our keynote video, investment thesis and investment mechanics in this blog announcement.
Why creating a nano fund?
- As you probably know, for the past few years, our founder, Djoann have been working in the tech industry, 6 years ago, co-founded GetLinks, went to 500 startups accelerator program in California, making our tech company the first Series A to be funded by Alibaba in SEA and got covered in Forbes, New York Times, Tatler, Techcrunch for that reason.
- Over the years Djoann have been receiving many inquiries from early-stage founders to learn how to raise their seed rounds from me and eventually asking me to invest in their business even before they apply in accelerators.
- In June we launched Atlas Ventures Program to do just this and we received an overwhelming 350 early stages pitch decks since then. With our limited team of Atlas, we did the best we could to filter investment opportunities we believed in.
- The problem is the minimum entry ticket is often 100K, too much for small investors like myself alone. We then thought about the means of regrouping to be able to put a ticket. And we have done just that the past 2 quarters putting together 2 investments of nearly 100K each.
- After its launch in February, Atlas Angel Club grew from 1 angel (Djoann) to 87 angel investors and we receive more investors applications every month, however…
- When early-stage rounds closing deadlines are a matter of days, it took us some time a few weeks to contact each investor, arrange a few calls, and pitch them one by one the investment opportunity.
- We have therefore decided to create Atlas Nano Fund in which angel investors can pre-invest tickets as small as 5000$ for us to then catch together investment opportunities we believe in while making faster our investment capabilities.
- How will the nano fund work?
- For Atlas Nano Fund One size, we would like to reach at least $4m, in order to be able to invest in 20 seed-stage companies at $100K and 10 series A companies at $200K.
- Atlas Nano Fund One will be a Special Purpose Vehicle limited company incorporated in Singapore in which every investor will be a shareholder. Investors investing $10,000 will get shares accordingly as investors coming in with $500,000. The Nano Fund will be the first close of the Atlas $20m Seed fund with ETA close in 2022.
- Once a month will then send you an investment opportunity we have curated by email, including the pitch deck and our analysis. The investment will then be validated if no investors in the investment committee (IC) express their refusal.
- In Atlas Nano Fund One, an IC will be run every month during which we will review the opportunities received and vote together with the opportunities we want to proceed with the investment.
- As all investors have a veto right, we will only accept investors which (1) we have met during a zoom call (2) share excitement for our investment thesis (3) trust us for the selection of files, and (4) undertake to exercise their veto right only force majeure (bad personal experience with the entrepreneur, conflict of interest, etc.)
- We focus on the quality of the entrepreneur/team: we are looking for experienced teams, who have built their concept around issues identified in their professional activity.
- Prerequisites: Seed stage, B2B focused, valuation below $10m, industry multiple reasonable (>20X). Validated Product / Market-fit and post-revenue companies with min 5k € / 10k € MRR
- Investment thesis: Towards 2050, emerging markets cities will pump out CO2 at a prodigious rate as they develop and grow. Atlas Nano Fund One is looking to back technologies companies reducing carbon emissions via the medium of cities around 4 key pillars.
- We are not necessarily looking for the unicorn who will give us an x100 with a survival rate of 2% (the other traditional funds are there for that) but rather the beautiful startup carried by a team of experienced workers who will do an x10 / x20 with a survival rate of 20% to 30%.
- Blockchain, Machine Learning, Artificial Intelligence ... we are not sensitive to buzzwords. We focus on the energy of the founders, the problem identified the value provided and the consistency of the project with our investment thesis.
- Locations: We are looking to invest in the centers of deep-tech that will produce technologies able to make emerging market cities green & climate-resilient. We identified key ecosystems as follows:
- As our team is composed of experienced entrepreneurs and financial advisors, we know what to watch: CAC, LTV, LTV / CAC ratio, hidden costs, balance sheets, undervalued, unreal conversion rates ... In short, count on us to know how to keep a financial approach to investment in- beyond the beautiful story ;)
Your role as an investor:
- Sleeping shareholder: you put the money in, you do not exercise your veto right and you read (or not) our reports to find out where the holdings are
- Shareholder involved in the selection: if you wish and if you have expertise in certain areas, we would be happy to have you help us qualify certain files
- Shareholder committed to investments: you are all valuable people (otherwise you would not be in this email!
- Many of you have entrepreneurial experiences and a large network so we can set up systems allowing you to help startups in which we have invested.
- Why invest through this fund?
- Possibility of creating a diversified tech portfolio that is saving the planet while making money for you with a small ticket (10k € if possible, 5k € if you are short, 100k € if you are hot ;)
- Multiply your chances to create wealth, not only from your job or current activities but also through taking shares into other energetic entrepreneur’s businesses.
- Make a realistic 3X of your money over 2-3 years while helping companies actually doing something useful that you will be proud to talk about to your children, wife, and friends.
- Get a foot in the tech industry as an investor and advisor to learn better about tech, connect with the C-level team, and if you really like the company: comes in as a hands-on advisor, consultant, or even senior executive!
- Take advantage of the quality of my network investment deal flow that the experts I know give you for free.
Note: we set the deadline for December 31 to deposit your funds to start investing in January.
Djoann & The Atlas Team