Dovetail raises $7.5M for its new fund

SaaS News -Dovetail, the venture studio that has worked with startups like Afterpay, is raising a new fund(source: SaaS Industry)

At a Glance

Dovetail studios, a full-service venture capital business, has raised AUD 10 million (USD 7.5 million) for a new fund. One of Dovetail’s goals is to train entrepreneurs to approach other VCs for funding. Dovetail is a full-service venture studio based in Sydney and Auckland that works with entrepreneurs who have a great idea but lack technical knowledge. Afterpay enlisted Dovetail’s help to build its digital infrastructure and create consumer-facing solutions.

Dovetail studios, a full-service venture studio, has raised AUD 10 million (approx. USD 7.5 million) for its new fund. 

Dovetail is a full-service venture studio with offices in Sydney and Auckland that works directly with entrepreneurs who have a fantastic idea but lack technical expertise. Dovetail assists clients in establishing businesses from the bottom up, preparing them for expansion and further investment. 

Dovetail is presently raising an AUD 10 million (about USD 7.5 million) fund that will be used to support seed, Series A, and Series B rounds in 15 of the most promising firms that have gone through its venture studio program. Dovetail has written checks ranging from AUD 150,000 (approx. USD 0.1 million) to AUD 1 million (approx. USD 0.7 million) as an investment.

People can think of us as the technical co-founder, responsible for driving and executing product strategy, design and the development of scalable products.”

Nick Frandsen, Co-Founder, Dovetail told TechCrunch

One of Dovetail’s aims is to prepare entrepreneurs to seek financing from other VCs; Blackbird, Qantas, and Wavemaker are among the firms invested in Dovetail’s portfolio companies.

By the time we need to make an investment decision, we would have worked collaboratively on a day-to-day basis with them for at least three months prior to a seed round and 12 months for a Series A. This means we’re essentially investing with the informational edge of a co-founder. Another trait that makes Dovetail unique is that we share our ownership in our portfolio companies with the entire team. This further drives unity, dedication, and a desire to succeed from our team.

Nick Frandsen, Co-Founder, Dovetail

Dovetail first partnered with Afterpay in 2017, when it had less than 40 workers. Afterpay’s founders, Nick Molnar and Anthony Eisen were seeking a digital product development partner to help them build and grow their mobile and web apps, according to Mr. Frandsen. Both had extensive financial industry expertise, but they came from non-technical backgrounds. Dovetail was brought in to assist Afterpay to expand out its digital infrastructure and launch its consumer-facing solutions.

Mr. Frandsen and co-founder Ash Fogelberg’s previous business, 1-Night, a ticketing and payment platform, was purchased by TicketDirect in 2013. 

Dovetail has a product agency that mostly works with firms in the United States. At the same time, its venture studio is now focused on Australasian startups, with ambitions to expand into North America in the future.

We are actively seeking industries that are large yet underappreciated by the startup community. We’re looking for ideas. that require hard-earned industry experience and can’t easily be replicated by teams of young aspiring entrepreneurs.

Nick Frandsen, Co-Founder, Dovetail
Read more stories