Investment Strategy

How we think
about investing.

Our investment strategy is built around a simple idea: that disciplined process, deep sector knowledge, and genuine portfolio involvement produce better outcomes than passive capital allocation.

Across both our Australian venture capital platform and our Chinese quantitative division, we apply the same core principles — rigorous screening, active management, and relentless focus on delivering returns to our investors.

Sector Focus

Where we invest.

Our venture capital platform targets four sectors where our team has genuine expertise and where Australia offers compelling early-stage opportunities. Each sector carries a mid-to-high risk and return profile.

I
30%

Disruptive Technology

We back companies commercialising transformative technologies — businesses where technology is the core product, not just a tool. We focus on companies with strong IP, international expansion potential, and a clear path to scalable revenue.

Fintech & financial software Artificial intelligence & ML Enterprise & SaaS software Internet marketplaces Life sciences & medtech Social media platforms
Risk profile: Mid – High
II
30%

Hospitality & Entertainment

We look for businesses that can centralise operations and scale modularly — without franchising. The ideal investment has a proven concept, clear unit economics, and a realistic roadmap to regional or national expansion.

Food & beverage concepts Eco-tourism & resorts Film & digital entertainment Experience-based hospitality Event technology platforms
Risk profile: Mid – High
III
20%

Alternative Energy

We invest in companies at the forefront of Australia's energy transition — prioritising businesses with commercial-stage technology, identifiable demand, and clear paths to expansion beyond domestic markets.

Energy usage tracking & analytics Demand management technology Hydrogen & fuel cells Small-scale solar solutions Small-scale geothermal
Risk profile: Mid – High
IV
20%

Other Complying Investments

A flexible allocation for compelling VCLP-compliant opportunities outside our core sectors. These investments diversify portfolio risk and allow us to adapt to evolving Australian and global market conditions without being constrained by sector mandates.

Any VCLP-eligible sector Emerging technology verticals Cross-sector opportunities Portfolio diversification plays
Risk profile: Mid
Portfolio Construction

Built for
diversification.

Our venture fund is deliberately designed as a high-volume, diversified portfolio — rather than concentrating capital in a small number of large bets. This approach reduces the impact of any single investment failure while preserving meaningful upside from the portfolio's best performers.

Individual commitments range from $50,000 to $2,000,000 per company, with typical investments of $250,000 to $1,000,000. We target equity positions of 10–40% per investee, large enough to be meaningful but leaving room for follow-on rounds.

All investments must qualify as eligible investments under the Venture Capital Act 2002 and be consistent with the approved investment plan. Investee companies must have total assets of no more than $250 million at the time of investment.

Criterion Requirement
Investment range $50K – $2M
Typical commitment $250K – $1M
Equity stake target 10% – 40%
Max investee asset size $250M
Eligible instruments Shares, notes, units, options
IP to total assets ratio 10% – 95% (post-investment)
Indicative Fund Allocation
Disruptive Technology 30%
Hospitality & Entertainment 30%
Alternative Energy 20%
Other Complying Investments 20%
Allocation by Investment Phase
Seed 10%
Series A 20%
Series B 30%
Expansion 25%
Exit-ready 15%
Investment Process

Eight steps from
deal to decision.

A consistent, repeatable eight-step process governs every venture investment we consider — from initial sourcing through to final Investment Committee approval.

01

Deal Sourcing

Opportunities generated through multiple targeted channels including startup hubs, university programs, developer communities, and our global investor network.

02

Application

All potential investee companies complete a structured application form covering business model, financials, technology, team, and growth strategy.

03

Automated Filtering

Applications are filtered and categorised by sector and investment phase. An initial VCLP eligibility check is performed at this stage to screen out non-compliant opportunities early.

04

Individual Assessment

Shortlisted applications are individually assessed by an investment team member. Sector-specific evaluation and domain expertise are applied. First formal compliance check performed.

Step 05

Domain Assessment

Applications forwarded for deeper domain and sector-specific assessment. Subject matter experts evaluate technology credibility, market size, and competitive positioning.

Step 06

Pitch & Interview

Shortlisted companies are invited to pitch and interview sessions with the investment team. Founders and management are assessed on vision, execution capability, and cultural fit.

Step 07

Due Diligence

Full due diligence performed against Threshold Criteria. Includes legal, financial, and technology review. Term Sheet negotiation conducted with standardised pre-money valuations.

Step 08

IC Approval

Final compliance check completed. Investment decision made by the Investment Committee within 10 business days. All approved investments must meet every Threshold Criterion without exception.

Threshold Criteria

The bar every
investment must clear.

No investment is made unless it satisfies all six Threshold Criteria. These criteria exist to protect our investors, ensure regulatory compliance, and maintain the integrity of our investment process. They are not guidelines — they are requirements.

The Investment Committee has the authority to reject any proposed investment that fails to meet these criteria, regardless of how compelling the opportunity may appear on other dimensions.

1
VCLP Eligibility

The investee company must qualify as an Eligible Venture Capital Investment under the Venture Capital Act 2002 and all applicable legislation.

2
Investment Plan Consistency

The investment must be consistent with the approved investment plan — sector, stage, structure, and size must all align with the fund's mandate.

3
Approved Term Sheet

Investment must be made on a Term Sheet that includes mandated minimum terms to protect the fund's interests, reviewed and approved by the Investment Committee.

4
Appropriate Investment Size

The size of the investment must be appropriate given the total investment opportunity, the fund's available capital, and the portfolio construction guidelines.

5
Sufficient Due Diligence

The Investment Committee must be satisfied that adequate due diligence has been conducted on the investee company, its team, technology, market, and financials.

6
Capacity to Manage

The Investment Committee must be confident the team has sufficient time and skill to actively manage the investment through to a successful exit.

Deal Sourcing

How we find the
best opportunities.

Quality deal flow is the foundation of great venture returns. We generate opportunities through five targeted channels, each giving us access to a different segment of the startup ecosystem.

Startup Ecosystem

Grassroots presence at startup hubs and co-working spaces across Asia Pacific — presenting at and sponsoring events to gain early access to high-potential founders before they are widely known.

Developer Communities

Strategic partnerships with major technology developer communities — particularly those focused on enterprise software — giving us access to technical founders with deep domain expertise before they seek formal VC backing.

Corporate Talent Pool

Unique access to corporate innovators with entrepreneurial ambitions through our global network. This includes investment in corporate spin-outs and ventures led by executives with proven operational track records.

Universities & Research

Active involvement in student entrepreneurship initiatives at universities in Australia, Hong Kong, Singapore, Taiwan, and the US — including the University of Sydney, UNSW, Melbourne University, and others.

Investor Network

Through our global network of angel investors, angel syndicates, venture capital firms, and corporate venture units, we access a large pipeline of pre-vetted, co-investment opportunities that would not be available to a standalone fund.

Government & Institutional

Working groups and co-research arrangements with the Department of Industry, Innovation and Science, CSIRO Innovation Fund, and leading Australian tertiary institutions — bringing deal flow from government-backed innovation programs.

Investment Committee

Independent governance
at every decision.

The Investment Committee is the final authority on every investment decision made by the fund. It exists to ensure that all investments comply with the investment plan and VCLP requirements — and that investor interests are protected at every stage of the process.

The Committee operates independently of the deal team. It may only approve investments that satisfy all six Threshold Criteria without exception. If any criterion is not met, the Committee must reject the investment — regardless of any other considerations.

10-business-day decision window

The Committee must decide on any proposed investment within 10 business days of a formal submission for approval.

Mandatory criteria compliance

Approval is only possible if all six Threshold Criteria are fully satisfied. No exceptions, no partial approvals.

Investor best interests test

Even where criteria are met, the Committee may reject an investment if it has reasonable grounds to believe the investment would not be in the best interests of the fund.

Standardised term sheets

All investments are made on standardised term sheets with mandated minimum terms. Term sheets are generally non-negotiable — protecting the fund from adverse deal structures.

Follow-on investment rights

All term sheets include the right for the fund to participate in follow-on investment rounds at a pre-determined valuation range, based on key performance metrics.

Committee Mandate at a Glance
10
Business days to decide
6
Threshold criteria required
100%
Criteria must be satisfied
0
Exceptions permitted
Quantitative Strategy — China

AI-driven precision
across three strategies.

Our Chinese quantitative platform deploys three distinct strategy lines, each powered by proprietary AI models and big-data analysis. All strategies are fully algorithmic — eliminating human execution error and ensuring consistent, process-driven outcomes across every trade.

Strategy Line 01
Quantitative Stock Alpha

High-frequency stock selection strategies using AI-driven factor mining and alpha signal generation. Available in both low-volatility (capital preservation focus) and mid-volatility (growth focus) variants. Proprietary stock alpha factors are continuously researched, validated, and updated to adapt to changing market regimes. Positions are managed with strict single-stock weight limits and daily turnover controls.

Strategy Line 02
Quantitative CTA Futures

Systematic trend-following and mean-reversion strategies deployed across Chinese futures markets. Medium-to-high frequency execution with dynamic position sizing based on volatility targets. Strategies are developed and maintained by our CTA research group, with continuous out-of-sample testing and real-time factor validation. Multi-broker execution infrastructure ensures uninterrupted trading even during single-broker system failures.

Strategy Line 03
Stock T+0 Intraday

Intraday algorithmic trading strategies exploiting short-term price inefficiencies in Chinese equity markets. Fully algorithmic execution with no manual trading risk. Strategies combine algorithm-based trading with carefully managed programme (Pb) trading to optimise execution quality. Real-time rule-checker systems monitor all aspects of strategy performance and trigger immediate alerts on anomalous behaviour.

Risk Management — Four Stages
01
Strategy Development

Data cleaning controls, parameter optimisation constraints, and anti-overfitting measures applied during factor research and model development.

02
Strategy Testing

Out-of-sample testing, volatility targeting, maximum drawdown tolerance limits, and pre-deployment simulation before any strategy goes live.

03
Portfolio Configuration

Strategy combination optimised for low cross-correlation. Correlation testing performed before adding any new strategy to the live portfolio.

04
Ongoing Monitoring

Continuous live tracking, factor effectiveness validation, minimum observation periods before model adjustments, and systematic post-close reconciliation.

System Infrastructure
Multi-site server deployment across different broker data centres with dual power configuration
Multi-broker execution — instant failover to backup broker on any system outage
Real-time rule-checker monitoring strategy health, market data quality, and position limits
Full disaster recovery plan with pressure-tested failover procedures

See our strategy
in the numbers.

Explore our full performance data or speak with our team about how our strategy translates into returns.