Tech investment firm, Bailador is launching a $40 million IPO on the ASX next month to raise funds to sink into expanding digital companies.
Co-founded by ex-Fairfax boss and former All Black captain David Kirk together with private equity director Paul Wilson, the company is looking to expand capital investment with a focus on the tech sector.
Already the company has about $37 million invested in hotel booking software SiteMinder, advertising expenditure tracking software SMI and video streaming company Viocorp.
Through its IPO, Bailador hopes to raise between $25 million and $40 million at an exercise price of $1 a share.
Bailador is looking at investing between $2 million and $20 million in each tech company it sees has a proven revenue generation model, solid team and is expanding.
The co-founders told investors target businesses “will typically have an enterprise valuation between $10 million and $200 million”.
According to the Australian Financial Review, 20 companies have already been short-listed and Kirk and Williams hope to add another three to five companies to the portfolio – depending on how much the IPO raises.
The company sees growth stage investment as a less risky option than throwing money at startups and the companies are usually closer to exit so theoretically returns a realised quicker.
Kirk and Wilson said they’ve already run the ruler over about 300 companies and said they are particularly interested in subscription and marketplace revenue models and wants to steer clear of biotech businesses and startups.