“proto: prefix denoting the early stage of some phenomenon”
Proto Investment Partners is a highly specialized alternative investment manager, with offices in Sydney and Melbourne, focused on angel investments and early stage venture capital.
Its first fund, the Sydney Angels Sidecar Fund provides investors with access to a unique flow of early stage (angel) business investments sourced, screened and selected by Sydney Angels.
Proto Investment Partners provides investment management, regulatory, compliance, performance reporting and back office support to the fund.
The Proto Investment Partners investment committee approves each Fund investment based upon procedural checks of the Sydney Angels due diligence and investment process. It also independently monitors all investee companies, approves second round investments and participates directly in exit negotiations.
The nature of Angel investments is that they bear high risk and are usually subject to dilution from future investment rounds. Management of these funds is highly specialised and requires an in depth knowledge of markets, and how to manage investments.
Proto Investment Partners employ a number of risk mitigation techniques including:
- Leveraging the deal screening and processing capabilities and broad industry experience of the Sydney Angels.
- Standardising term sheets
- Board representation on investee companies or observer rights .
- Process driven investment process.
- Angelsoft’s deal-flow and portfolio management tools for accepting, tracking and collaborating on early-stage investments.
- Investment committee investment review and potential veto.
- Pro-rata rights for future investment rounds
- Portfolio diversification with 25-30 investee companies ranging across size and sector.
- Spreading investment timing of deals over 5 year period.