Dovetail, the venture studio that has worked with startups like Afterpay, is raising a new fund – TechCrunch

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A photo of Dovetail co-founders Ash Fogelberg and Nick Frandsen

Dovetail co-founders Ash Fogelberg and Nick Frandsen

Primarily based in Sydney and Auckland, Dovetail is a full-service enterprise studio that works carefully with founders who’ve an ideal thought, however might lack technical backgrounds. Dovetail helps them construct corporations from the bottom up, making ready them for progress and extra funding. Based in 2014, Dovetail’s success tales embrace Afterpay, the Melbourne-headquartered unicorn that is likely one of the highest-profile gamers within the purchase now, play later area, together with Klarna and Affirm.

“Individuals can consider us because the technical co-founder, answerable for driving and executing product technique, design and the event of scalable merchandise,” Dovetail co-founder Nick Frandsen instructed TechCrunch.

Dovetail is at present elevating a $10 million AUD (about $7.5 million USD) fund that can be used for seed, Sequence A and Sequence B rounds in 15 of probably the most promising corporations which have gone by means of its enterprise studio program. As an investor, Dovetail has written verify sizes starting from $150,000 to $1 million AUD.

One in every of Dovetail’s targets is put together startups to hunt funding from different VCs; corporations which have invested in Dovetail’s portfolio corporations embrace Blackbird, Qantas and Wavemaker.

“By the point we have to make an funding choice, we’d have labored collaboratively on a day-to-day foundation with them for at the least three months previous to a seed spherical and 12 months for a Sequence A. This implies we’re basically investing with the informational fringe of a co-founder,” stated Frandsen. “One other trait that makes Dovetail distinctive is that we share our possession in our portfolio corporations with all the group. This additional drives unity, dedication and a need to succeed from our group.”

Dovetail started working with Afterpay in 2017, when the corporate had lower than 40 staff. Frandsen stated Afterpay’s founders, Nick Molnar and Anthony Eisen, have been on the lookout for a digital product improvement companion to construct and scale their cellular and internet apps. Whereas each had deep expertise in monetary companies, they got here from non-technical backgrounds. That’s the place Dovetail got here into play, constructing out Afterpay’s tech platforms and serving to launch its consumer-facing merchandise.

Another notable startups which have gone by means of its enterprise studio program are useful resource planning SaaS platform Runn; one-click invoicing device Marmalade; Supplier Alternative, a administration platform for suppliers in Australia’s Nationwide Incapacity Insurance coverage Scheme; Landmarks ID, a privacy-compliant cellular location intelligence platform for entrepreneurs; and Fluenccy, a service that helps importers and exporters lower your expenses on overseas trade.

Earlier than they began Dovetail, Frandsen and co-founder Ash Fogelberg’s startup, ticketing and funds platform 1-Evening, was acquired by TicketDirect in 2013.

Dovetail’s enterprise studio is sector-agnostic (although it has robust expertise in fintech, SaaS and marketplaces), and works with startups that will not have a product but, however have founders who “are formidable, commercially-savvy and produce trade experience from the sphere through which they’re making an attempt to resolve an issue,” stated Frandsen.

When deciding what founders to work with, Dovetail considers on the viability and progress potential of their thought.This contains taking a look at how well-suited founders are to the problem, if there’s sufficient market potential for the startup to develop into a big firm and the way a lot competitors there’s.

Dovetail has a product company that serves largely U.S. corporations, however its enterprise studio is at present targeted on Australasian startups, with plans to develop into North America sooner or later.

“We’re actively searching for industries which are massive but underappreciated by the startup group,” Frandsen stated. “We’re on the lookout for concepts. that require hard-earned trade expertise and might’t simply be replicated by groups of younger aspiring entrepreneurs.”

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