Arafura Ventures investment focus is on Internet software start up companies typically with business to business (B2B) Software as a Service (SaaS) business models.
We Like:
- US based management primarily targeting the North American market.
- Platforms combined with technology applications that can scale globally.
- Founders with deep domain and technical expertise ensuring defensibility and inherent Intellectual Property.
- Recurring revenue business models showing 2 to 3 quarters of revenue growth with increasing momentum in sales and decreasing churn.
- Product focus where monthly revenue rate per customer can reach 5 to 6 figure contract values.
- First mover or near first mover advantage in a particular market or specific place in an existing or mature market.
- Diversity of supplier and customer base in various segments or industries.
We Prefer:
- To embrace the vision of the company founders we invest in, not try and change it.
- Co-invest with other investors or Venture Capital Firms.
- Companies that are open to help and keen to involve investors where they can add value through experience.
- Focussed and sharp investment pitches, whilst Informal and transparent. We like to discuss the problems and challenges as well as the upside.
- Founders who share our forthright, honest and plain speaking philosophy.
We Don't Typically Like:
- Business models based entirely on viral consumer growth, advertising or freemium business models.
- Products that are not unique or operate with many competitors.
- Addressable market sizes that are too small.
- Over emphasis on the value of customer data and social media as a catalyst for customer acquisition.