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Are startups a good investment?

HOSTS Maddy Guest & Sophie Dicker|30 November, 2021

Imagine being there in the early days of Canva… watching a disruptive company come into the mix and being given the chance to invest in its early stages. Considering its now $55 billion (AUD) valuation, we reckon the investment would have paid off! Well, there are people who invest in these companies for a living, constantly trying to spot start-ups that will come through and change our lives as we know them. Today, we have an incredibly insightful chat with Natalie Collins, an angel investor in the Startmate Venture Capital First Believers Immersion program about what she looks for in up-and-coming companies and how to invest in start-ups.

Keep track of Sophie and Maddy between the episodes on Instagram, or on TikTok, and come and be part of the conversation on Facebook with our You’re In Good Company Discussion Group.

Got a question or a topic suggestion? Email us here

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Maddy: [00:00:06] Hello and welcome to You're in Good Company, an investing podcast striving to disrupt the norms in the finance industry. I'm Maddy and as always, I'm in some very good company with my co-host Sophie. 

Sophie: [00:00:17] Hi, Maddy, I have another joke. Why is Ireland a good investment? Why? Because its capital is Dublin. Oh my gosh, it is like Dublin. Your profit. Got it! Thank you. Thank you so much for clarifying again if you have to. If you have to explain the joke, it often says something. Oh, it's a good one. Come on, you laughed. Anyway. I'm really looking forward to today's episode, but before we jump into it, we would like to acknowledge and pay respects for one drew people of a nation who are the traditional owners of this land. We pay our deepest respects to the elders past and present, and to the next generation who we hope to create a different future for. So, so. On today's episode, we are going to be learning all about the start up world and how you can invest in start ups, whether they're a good investment and what to look out for, which I think we can also apply to our every day investing as well. Yeah, because I mean, sometimes the Start-Up space is a little bit more difficult to access and we're going to talk about that a little bit and you know, some avenues that you might be able to use to access that space. But we also chat about how how big companies or multinationals such as Coca-Cola are investing in the benefits of big companies like this looking into the Start-Up space. But before we do, let's hear from a large community member. 

Katie: [00:01:39] Show me the money, honey. Hi, you're in good company. My name is Katie and I'm 26 years old. I currently work in digital marketing for a not for profit, and I earn around four and a half thousand dollars a month. My current investment strategy is ever changing as I'm currently attempting to save for a house deposit. God help me, but I do hold mostly company based shares that are usually Australian, but I do my toes in an international market here and there. My portfolio currently sits at about $14000, with just over $4000 of that thin profit. I've also just started dipping my toes into cryptocurrencies, and I somehow have managed to turn $200 into one thousand two hundred with a lot of trial and error and mostly small holdings. 

Maddy: [00:02:37] So great to hear from another YIGC community member. And if you would like to hear your voice on the show, jump into our dms at YIGC podcast on Instagram or send us a message on Facebook we would love to hear from me before we get into today's episode, let's define a couple of terms so that we can all be across the conversation. With that, we mention a couple of terms of fund and pay fund. Can you give us a quick rundown on what these babies are? Yeah. So essentially, VCA stands for venture capital and pay stands for private equity. And in simple terms, they are funds. So people managing money from private investors, so individuals collectively putting their money together, which the fund will then manage. And that fund and the team will put their money into investments. So the example that we talk about in the episode is Glo Capital Partners. It's a new private equity fund founded by Kate Morris, who is the founder of Adore Beauty. So now in today's episode, we are so excited to welcome Natalie Collins onto the show. Natalie is a non-executive director on boards within the ASX 200 listed Century Capital Group, which is an Australasian real estate fund manager. Previously, she worked at Coca-Cola Amatil for 22 years in her role as the co-founder of the corporate venturing platform. Here, she worked with and invested in start-ups to help build the entrepreneurial capability across Coca-Cola Amatil. Today, Natalie is also an angel investor and start made venture capital First Believe is Emerging Programme Australia's leading Start-Up Accelerator, where she helps to democratise access to investment opportunities and broaden founders access to capital. Naturally, we are so excited to have you welcome to your and good company. Thanks, girls. It's great to be here, Natalie. We're so excited for today, but before we jump into all of your exciting content that we know you have planned. We want to get to know you a little bit better. So firstly, what's the best thing that's happened to you this week? 

Natalie Collins: [00:04:39] Hands down, best thing is I booked a holiday after a shocking couple of months and years. I think you could say for everyone, you know, with those prolonged COVID lockdowns, which we're still in, although hopefully about to come out here in New South Wales, you know, the bushfires before that, it's just been eight months of cancelled holidays for all of us. It was definitely a highlight of this week to book a holiday and look forward to spending some really lovely time with family and friends and some great weather and just be able to enjoy all the fantastic things that this country has to offer. 

Sophie: [00:05:13] Sounds so nice. Yes, something to look forward to is, I think, what we all need at the moment. And naturally, if you could have dinner with anyone, who would it be and why? 

Natalie Collins: [00:05:23] At the moment, it would have to be Gladys Berejiklian. 

Sophie: [00:05:28] great.

Natalie Collins: [00:05:28] I think after the you know, the time that she's had recently, particularly the last 18 months, is New South Wales premier. I would just love to hear some of the exchanges she's had with Scott Morrison, with Dan Andrews, Anastasia. I mean, I think there'd be some incredible dinner conversation in there. 

Sophie: [00:05:46] I'm sure there'd be many glasses of wine involved with all the stories that she probably has. 

Natalie Collins: [00:05:52] No doubt. No doubt. I think we'd start with a cocktail. 

Maddy: [00:05:55] So final question, Natalie, if you could be a stock or company, who would you be and why? 

Natalie Collins: [00:06:00] For me, it would be Canva. They are arguably today's golden child of the Australian start-up landscape. And, you know, if you think about them, they were founded in 2013, and only seven years later, they've got 60 million users across 190 countries. Just last month, they raised 200 million of capital of a valuation of $55 billion, and that's just incredible. That now makes them more valuable on paper than Telstra, which is just extraordinary. 

Maddy: [00:06:32] There are some huge names, but I remember looking at when they raised that money and where it sort of put them in size on the ASX, and this would be like bigger than Woollies as well. It's just so crazy to say it really is. 

Natalie Collins: [00:06:45] And you know, that latest capital raise was led by some of the most reputable investment firms from around the country around the globe, including Sequoia T. Rowe Price and some of Australia's leading firms. I Blackbird Ventures 8re Ventures. And then, you know, I just love the fact that it's led by a female founder, Melanie Perkins, and I don't know if you read, but they've just committed to pledge the vast majority of their equity because she and her husband, Cliff, now are extraordinarily wealthy, and they're going to pledge a lot of their equity to do good in the world through the Canva Foundation. So for me, it's you know, what's not to love about Canberra at the moment? 

Sophie: [00:07:22] Yeah, I completely agree. I think this has been one of my favourite news stories of the Ren a half, and I was so excited and just could not stop reading about it. Absolutely. So naturally, with your career so far, pretty impressive. Might I say you have made it into the world of start-ups and venture capital? Before we get into this a little bit more, can you just explain to us what venture capital is? 

Natalie Collins: [00:07:46] So venture capital is it's a form of financing provided by venture capital firms to the start-ups that they think have high growth potential, and so they inject Dollars into the firm. In return, they get some equity in the business. And so in theory, the value of that equity will grow over time and delivering hopefully outsized returns for that particular company. And I guess the the important thing here is, you know, the potential growth, the word potential because venture capital is generally invested right at the beginning of a company when it's considered really early stage. So it may not be turning a profit yet, which is quite hard to wrap your head around that you'd invest in something that's not even making a profit. But there's real kernels of growth there. So things like, you know, increasing monthly revenue there on the board, in customers, they've got low customer churn. So real signals that these companies are going to be successful in time. We just talked about Canva raising two hundred million in venture capital. Well, back when they launched in 2013. So Blackbird Ventures, who just invested again in this most recent round, they put in two hundred and fifty grand for 14 per cent ownership, and they've continued to invest over the years. They've now invested over 50 million, but they've maintained that 40 per cent stake. So, you know, on a exactly on a valuation of five billion, I mean, that's some pretty sweet returns there. 

Sophie: [00:09:14] Oh, wow. And how did you yourself make your way into the world of Start-Up and venture capital?

Natalie Collins: [00:09:20] Yes. I'd spent, you know, 20 odd years in the corporate space doing things from, you know, finance, supply chain marketing, corporate innovation, and I was at Coca-Cola Amatil and Coca-Cola is obviously a company with a very successful track record in here in this country for over 100 years. But to remain successful and stay ahead of the competition, we really needed to keep an eye on what was happening outside of our organisation. So what new technologies, what business models were starting to emerge? And we had a really visionary CEO in Alison Watkins, and she really saw that there was an opportunity for us as a business. Start engaging with the Start-Up ecosystem, and so she gave a really small team of us the opportunity and the remit to do just that. So in 2018, we founded amateur leagues and as part of amateur works, we ran a corporate accelerator which took early stage or napkin stage IDs, if you like, and built them into minimum viable product. So something that you could actually put in front of a customer. And that really got us closer to the Start-Up mindset and and helped us to embed ourselves in the local Start-Up ecosystem. And we also raised a VC fund and started investing into companies that could really we so helped to fuel that growth. And they were technology solutions, not beverages. So things that sort of sat up and down our value chain, whether they were linked to our supply chain or things that could help us to sell or help our customers to sell more beverages. And then we also built a global VC community across the Coca-Cola system, and that was all about, you know, sharing learnings and working together to identify and scale businesses that we were investing in across the globe. 

Maddy: [00:11:04] I love that concept of a napkin, an idea at such a I feel like venture capital is such a fancy finance word. But at the end of the day, it's just being able to invest in and support really small scale businesses. And I think it's such an exciting area to learn about in investing. I am wondering how, because another word that I have heard quite a bit is angel investing. How does venture capital differ from angel investing? 

Natalie Collins: [00:11:30] Yes. Angel investors are individuals as opposed to venture capital firms. And these individuals, you know, people who at today need to meet the definition of a sophisticated investor, but they invest their own money into start-ups, and it's generally done at a stage before that company would attract venture capital investment. So from a firm like a blackbird or a sequoia. So I think about Shark Tank, if you like, if you've seen that show. Yeah, so Steve, next that Amy senses of the world that investing their own money into into a start-up or into an idea, or really even at that stage, into a founder that they believe can really build a successful business. And so, you know, why? Why would they do that? It's obviously pretty high risk. And, you know, hopefully it's part of a diversified investment strategy would be the first things that they are investing in other asset classes, too, and it just makes that part of their portfolio. But it is a way within that portfolio to access outsized returns. So if you see Canva that we've just been talking about, that would be amazing to invest in something like that. I know I wouldn't. We all like to have a hand in our portfolio, but it can also help, you know, for those sophisticated investors in particular to access taxation incentives depending on the status of the company that they're investing in. What I have found, though, is that most angels are just really passionate about this particular space there. They believe in the role that start-ups can play in stimulating economic growth, in driving jobs and in technological advancement and just improving the lives that we live. And I think that's a really key component to to an angel investor is just the passion and belief they have in the difference that start-ups can make in the world. 

Sophie: [00:13:08] I have to say even now, like if Canva could please just list because I would still invest in them today. Can they stop saying private?

Natalie Collins: [00:13:16] Well, you know, back in the day that, you know, the likes of Facebook and whoever, they all started out just like that too, and their valuations continue to to go north. So yeah, please list. 

Maddy: [00:13:27] Guys, come on. I do have a follow up question because I know that you mentioned sophisticated investor. Would you be able to give a bit of background to what you would classify as a sophisticated investor? 

Natalie Collins: [00:13:39] Sure. So if you say the I mean, the criteria is in black and white and that is a sophisticated investor, you are classified as a sophisticated investor if you have either earned more than two hundred and fifty thousand dollars for the last two years or you have more than $2.5 million in net wealth. And so at the moment, to invest as an angel investor, you do need to meet either one of those criteria and have an accountant certify that you do. But there's a lot of people in the industry at the moment who are not that happy with that criteria and believe that there should be the ability to invest as an angel investor should be a lot more accessible. So there's some lobbying going on and hopefully in time that criteria will change and and it will be a lot more accessible to the everyday retail investor should they choose to make angel investing part of their portfolio.

Sophie: [00:14:30] Well, maybe Maddy and I will start lobbying so that we can also get into things like Candace today, $55 billion valuation. 

Natalie Collins: [00:14:39] I'd say you probably missed your boat on Angel investing in Canada, but next, the next candidate

Sophie: [00:14:45] might not qualify for. I saw as well the other day I was reading about Kate Morris's new pay fund as well, and that they've got a similar qualification for investors. I'm not sure if it's exactly that, but it sounded like. The same sort of sophisticated level net wealth requirements, and I remember thinking, damn, I want Kate Moss to invest my money for me. 

Natalie Collins: [00:15:06] Well, it's interesting you mentioned Kate there and Glow Venture Partners that she's just launched. So is what we're starting to see here in Australia. Is these successful founders like Kate now investing back in the ecosystem. So Mike Cannon-Brookes has Grok Ventures, so he's done the same thing. Scott Farquhar and his wife have launched Skip Capital, so they're doing the same thing. So there's a lot of these founders that have had success and are really passionate about investing back in the ecosystem to support that next generation of founders, which is just amazing to see. 

Maddy: [00:15:39] I think that's also really exciting because Australia is, you know, still a bit of a growing economy in terms of we're not at the same level as some of the bigger economies like the US. So really investing back into our ecosystem just gives us that push that we really need because there's a lot of that incredible technology that comes out of this country. And then it's just sold off to bigger companies in bigger regions. So it'd be great to just keep some of it in Australia. 

Natalie Collins: [00:16:02] I so right. And, you know, 10 years ago and probably less than that to to raise capital, you really had to head off to Silicon Valley. And it's just amazing to see that that's no longer the case. They really are a lot of options to raise capital here, whether it be through angel investors or through venture capital firms, family offices. There's a lot of people really interested in this space. And as you rightly point out, SoFi, there are so many amazing entrepreneurs in this country or in this region that deserve that funding. So, yeah, bring it on.

Sophie: [00:16:34] So Natalie, you've become an angel investor at start mate. Can you give us a little bit of insight into what statment is? And I guess what is the role of investors like yourself? 

Natalie Collins: [00:16:45] So you may start mate referred to as the epicentre of Start-Up Ambition in Australia and New Zealand, and it really is. They're an amazing bunch. It was created back in 2011 at a time when, you know, just talking about the fact there was just no venture capital or start-up scene here in Australia, you really had to go off to Silicon Valley to find those funds, and they pulled together a micro fund, which was supported by a number of successful founders. So Scott and Mike from Atlassian being two of those. And they started to invest in that next batch of founders and initially stopped. It was just an accelerator. So 12 structured programme that took those early stage businesses and accelerated their growth. And today they're running two of those a year, which is fantastic, and they've built this amazing community of seas, of former founders and mentors like me who share their experience and invest their time and their money into each of those cohorts. And it's really focussed on giving those founders with amazing ideas and an already proven traction in the market. That next injection of growth to really spur them forward. And I guess what's quite unique about their model is this community of mentors and founders that they have around them. Having this skin in the game, you know, their own money and time invested to that really gets their buying. And I guess to to help those founders and and spur them along. So an amazing approach, and it's been really, really successful. They've now invested in over 150 start-ups, which is just great. And it look, it's probably also worth mentioning for your audience. In particular, Start right now runs a number of fellowship programmes, as well as the their flagship accelerator. So they've got one that's aimed at increasing the number of females that are working in start-ups. The Female Founder Fellowship and they've also got one that's about creating opportunities for students to enter the workforce in a start-up. So really trying to drive jobs and female representation in technology, and they're doing a fantastic job at that. And now the other thing that's also linked to this particular conversation is that they've created a programme just in the last 12 months, which they call first believer's. And it's about trying to get more angel investors here in Australia and really opening up that to a wider audience. And actually, it's a programme that I participated in with them in the last 12 months, which was just been fantastic.

Maddy: [00:19:09] So what do you look for as an investor in the Start-Up space? You know what? What are the types of businesses that you're working with that you've just described like, you know, the cafe up the street? Does it have to have certain criteria like what are you working with?

Natalie Collins: [00:19:22] So let me start with that. What am I looking for? And look, the things that I look for are fairly consistent with what angels and VCs would look for across the globe. There's four key things of pocketed them into four things. First, one's team. Second, things market or opportunity. The third one is product, and the fourth is commerciality of the business. So let's start with the first one being team. So you know, who are they, who were the founders that are founding this particular business? You know, I'm looking for. Are they pursuing their life's mission? You know, you don't start a start-up or you shouldn't, you know and hope to be out of that and exit in. Two years time, the best found is the most successful companies it for the long haul, so you wouldn't know that they're really pursuing their life's mission. They're really passionate. What are their unique insights in this space now? What do they bring to the table that's unique and different from anyone else? And do you think they're going to have the ability to attract great talent and lead a big team in time? So that's that's tainted the sorts of questions that I'll be wanting to to have answered. And secondly, it's a market opportunity, what we're looking for there is what is the problem that they're solving? Oh, great start ups have a particular problem that they're trying to solve and then we want to have a look at, well, how big is that problem? What's the size of the market? Is it a global problem? Hopefully it is. And are there market forces at play or are they trends right now that make this particular product likely to be successful at this moment in time? And then third is product. So what's the solution? What have they built? How is it different to other alternatives in the marketplace? Is it defensible? You know, have they built something that means others aren't going to be able to just come and do the same thing and replicate what they have done? And then what traction do they have? You know, do they have, you know, increasing revenue a month on month as a acquiring customers? What are those metrics that they're measuring? They can show me that that product has gained traction in the market. And then lastly, the commerciality, the business. So what's their business model and how are they going to make money at the end of the day? What's their path to profitability? And they go to market strategy. So, you know, there's quite a few questions in. It is a fair bit, but they're they're the sorts of questions that I would want to work through. And if you let's go back to Canberra for a minute, let's have a look at at them. So the founders, if you think about the team that's founding canvas and Melanie and Cliff were second time founders and you knew that they'd done it before they'd been successful. Their first business was a photo book software, so they'd been in that general space. They'd had success and this Canva was sort of a spin off of that. And so that's a huge tick to have a second time found out of someone that's been there, done that before and really think about the opportunity of of Canva, you know, collaborative design platform, meaning anyone can create professional designs, you know, the market and the opportunity, the potential there is huge and the product. So desktop design, you could argue, is right for disruption. The creator economy was starting to emerge, so every man and his dog keen to be able to do that rather than outsource and make, you know, give that to someone that was professionally trained to do it. And then lastly, the commercial reality of their business, you know, it's a pretty simple SAS model subscription model, clear path to profitability. So back of the envelope, it takes a lot of boxes, obviously easy to see that with with hindsight that, you know, that's that's sort of the process that you would go through as a AVC or an angel investor to assess an opportunity. So, Sophie, to answer your question, you know, probably not the cafe up the road, that's often a technology solution, but not always. 

Maddy: [00:22:54] Yeah, I was going to say, even though these are questions that you ask, you know, in the Start-Up space, they're actually questions and buckets that you can use regardless to assess companies that you're investing in in the market because it's a great they're a great couple of four buckets that you've got there there. 

Natalie Collins: [00:23:08] Absolutely. I can't agree more. 

Sophie: [00:23:10] So we've spoken quite a bit about Canva. I'm very interested to know if you can tell us anything about some of the start-ups that you're either investing in or mentoring at the moment. Yeah, absolutely. He's made the cut. Yeah, exactly.

Natalie Collins: [00:23:25] So yeah, let's put capital aside for the moment. So I'd love to tell you about Bear. So, so Bear. SAP is a company that I have been mentoring through the recent Start-Up Estimated Accelerator, and it's just been an incredible privilege to watch this business evolve over the past three months. So they have developed a technology that crystallises the active ingredients in soap into a padded formulation and using just plant based ingredients that I haven't sort of compromised on on quality there either. And so as a as a consumer who uses hand soap, you're all you need to do is add water. And so, yeah, I don't know if you know about the soap and a lot of those personal care and cleaning products and 90 per cent water. So we're shipping a ridiculous amount of water around the globe. Yeah, that's right. Just literally millions and billions of leaders around the planet. And so not only will so take plastic bottles out of it because the bottles that you feel are reusable, but it's going to significantly reduce carbon emissions. So super excited to see where that business goes. And Preska, the founder, is an incredible founder. She's got some amazing mentors and advisors on board, Kate Morris being one of those. So, yeah, really excited to see where website goes now, as in any investor will tell you any experienced investor, it's really important to diversify your investments. So one of my other investments is completely other end of the spectrum, and it's a company called Réplica, and they are an AI voice platform for gaming and the movies. And eventually the Metaverse goes gaming. 

Sophie: [00:25:02] It's just so on trend at the moment. 

Natalie Collins: [00:25:05] It really is, and I have an 11 year old son, and so unfortunately it is in our household. And so I just say between him and his mates, you know, the the industry that sits behind these entertainment. And I think, yeah, it is, there's just so much opportunity there. So. These guys, you know, at today, they these gaming companies need to go and pay voice actors to record voice. And so what replica does rather than companies having to do that and which is really timely and expensive? They're building an AI driven platform that will have high quality, expressive voices that can act and perform for gaming. Eventually, movies and all sorts of things as the Metaverse continues to evolve. So that's a really exciting one to watch. And as you said, Marty, I think really on on trend. And then one final one with you, which I think might be interesting for your audience. And it's a company called Pearler and they are a retail wealth platform. You say, Oh, have you heard of these guys? 

Sophie: [00:26:08] Yeah. You know, Falla. 

Natalie Collins: [00:26:09] Very good. Well, yeah, they these are an investment of mine. So as I'm sure you know, from the sounds of what you've just said, they back creating long term wealth for everyday people through consistent investing. So they kind of I've heard them described as the anti Robinhood. So they haven't been, you know, they haven't looked at it as a optimising for day trades. They're starting with those more conservative, long term investing products like ETFs and superannuation. It sounds like you're familiar with them, but some of the stats that I love about these guys, you know, they launched 12 months ago. They already have over $70 million invested through their platform, and they've grown at forty five percent month on month over the past six months, which, you know, as a as an investor is a great sign. So, yeah, a great one for your audience to have a look at if they haven't already. 

Sophie: [00:26:58] Yeah, I think we've actually seen a lot of new brokerage platforms kind of come into this space. And because Maddie and I, you know, speak about them pretty often, we do love looking into, you know what these kind of services are offering and how they try and kind of differentiate themselves from each other because they are, you know, offering the same thing. But then they try and go down different avenues of like how to differentiate and what they can actually offer to consumers, whether it be the technology or the fees or whatever else. So I think it's a really interesting space and it's a great time to be a retail investor because they're all competing against each other. So it's just making their products better and better and better. 

Natalie Collins: [00:27:33] I can agree with you more, Maddie. I think it is an amazing time to start your journey as a retail investor, just the access that you now have to different asset classes for, you know, much smaller investment sizes. I just think it's incredible. So, yeah, you're on a great journey where you are starting to have a look at all these things and sharing that with your audience. 

Maddy: [00:27:56] So last question on this. We're talking about retail investors. Can we, as retail investors, invest in any of these, you know, incredible start ups that you've been chatting about? 

Natalie Collins: [00:28:08] So, yeah, I mean, I think we go back to the sophisticated investor criteria at the moment. You do need to meet that criteria. However, you know, if you do or in time, if you don't need to, there's a few ways that you can invest with smaller check sizes. So as an angel investor, you can go individually onto a cap table, but you generally need to have a reasonably large check written to to gain access to that. So there's another avenue, which is fantastic for those starting out, and that's to invest via a syndicate. And that's when angel investors pool their funds together to be able to invest a large sum of money and make that more appealing to a founder. And so there's syndicates like Flying Fox or 10:13 who facilitate that for you. And I found them to be, you know, a fantastic source of deal flow. They do a lot of the assessment. You know, I just took you through what I'm looking for and I am looking and assessing potential investment opportunities. They actually do all the hard work and run through that process. And so as an investor, you know, you can sort of piggyback off the hard work that they have done and choose to invest or not. So that's another way to access it. The other way would be through platforms like equities and so equities, you can actually invest not as if you don't have to be a sophisticated investor to invest that way. And you can invest very, very, very small sums of money, you know, hundreds of dollars. They are generally consumer products as opposed to technology solutions. That's tends to be what differentiates them coming through that platform. But, you know, if you really want to get access to these sorts of of ideas, it might be a really great way to start. And companies like their soap have decided to to raise their funds through equities, at least initially. So, yeah, get on there and check it out. Yeah. 

Sophie: [00:29:58] Well, we are going to take a quick break for our sponsors, but we'll be right back to chat more about venture capital investing. So, Natalie, you worked at Coca-Cola for 22 years, and you're part of that venture capital sort of armed. Why do you think it's so important for large companies such as Coca-Cola to be allocating capital to investing in start ups? 

Natalie Collins: [00:30:22] Look, I think it's super important for companies of all sizes to continue to innovate and stay ahead of the game, particularly, you know, large companies that have been successful for a long period of time. It doesn't mean that, you know, that trajectory will continue. And so I like to think of investing in start-ups as a form of outsourced R&D as opposed to an investment with a targeted return over a set period of time, which is probably traditionally how businesses look at investing. And so corporates engaging in venture capital really are investing in companies and business models that have the potential to add value to their core business. And any financial return over time is, in my opinion, you know, an added bonus. And so for Amatil and mostly corporates that invest in this space, they're investing in technology solutions up and down the value chain. So things that can either make their supply chain more efficient or solutions that can help them to sell more at the end of the day. So, you know, if companies are not keeping an eye on what's happening, particularly in the Start-Up scene, they really do risk being disrupted just like the blockbusters in the Codex of the World. 

Maddy: [00:31:29] On that point, as a retail investor, I think it's such a positive for me because it indicates that the company is investing to keep up with the latest trends and technologies and really, you know, stay ahead of what's going on around them because you don't want them to be the next blockbuster if you're investing in. 

Natalie Collins: [00:31:46] No, definitely. Definitely not. And yeah, I think it keeps the core business on its toes, too, when it's tapped into what's happening in that in that start-up industry. So, yeah, big, big believer in corporates, in particular, working together and bringing what they have to the table to start up. So, you know, I really think of it as as them working together and collaborating, you know, the start-ups bring that, you know, that Start-Up mindset, that innovation, that responsiveness and speed, agility and corporates really bring that, you know, that proven model, the proven business model that the network of investors of the supply chain that's already built the customer base. And you know, when you bring the two together, I think that's where the magic can really happen. 

Maddy: [00:32:32] Know I was going to ask, what do you think large corporations can learn from the smaller players in the Start-Up World? And it seems like it's the agility that they can bring, you know, their decisiveness and their quick actions to really keep up with what's happening in the world at the moment. 

Natalie Collins: [00:32:46] Absolutely. So there's a lot of that, and I think it's that whole mindset that a start-up brings. So really focussing on the problem as opposed to the solution is a really big one not being attached to a particular solution, but getting close to the customer, really understanding the problem that they have and then applying different solutions and applying them in a really small way. So that test and learn mentality is really important. So don't come up with a solution and then ask for $5 million to implement it. Let's get really close to the problem and propose a few different solutions and test and learn really small and fast, and then iterate off those solutions to find the one that fits best and then ask for the big bucks to go and implement it. 

Sophie: [00:33:28] Well, I think that brings us nicely to our watchlist, and I must say I'm very excited to hear what you're going to add today, each episode where you have been asking our guests to add a stock company, news, trend industry, anything you like to our watchlist. And the purpose of this is to get us thinking outside the box and broaden our horizons in the investing space. But of course, we're not financial advisors, and this is purely for educational purposes only so nationally, but a bringing to the watch today. 

Natalie Collins: [00:33:56] I would love to add to your watchlist a another podcast called TVC, and it's hosted by a guy called Harry Stebbins, and he's one of my favourite podcasts. So Harry started this podcast at 17, and he's only 25 now, so he's still super young riding along the Tigris. So, yeah, he's been going for a while. But yeah, so he's had over a thousand episodes now that he started back in his mom's garage and he was just super keen to learn about venture capital. And so today he he interviews all the leading voices, some founders from some of the best known companies, you know, the Spotify of the world as an example. Wow. In theory, for 20 minutes, that's the 20 minute they say they tend to go a little bit longer, but he's super engaging. His guests are phenomenal, and I think it would be a great way for your listeners to start to really immerse themselves in the global start-up landscape. It's just a really great lesson. So 20 minute DC Harry Stubbings, 

Maddy: [00:35:00] you put us onto this one a few weeks ago now, and I can confirm it is a great recommendation, even just to get you thinking. About no. Not start ups necessarily in particular, but like, where are the trends going? And I think it's great inspiration for your own investing as well. Absolutely. Glad you enjoyed it. Now, Natalie, our last question for you is what piece of advice would you tell yourself your younger self? Sorry, starting out on your investing journey? So I'd have 

Natalie Collins: [00:35:27] two pieces of advice for myself, and the first would be I'd tell myself to approach it like a start-up. So invest small amounts across multiple asset classes, thematics different platforms, and then learn from each of those investments and then tweak my approach as I go. I just I love that approach, and I tend to apply it to lots of different things in my life. So if I was going back to the beginning of my investing journey, I would definitely take that with me, and I remind myself that it's a, you know, it's a long term gain. So be patient, enjoy the ride, enjoy the ups and downs just like a Start-Up founder has to. And then secondly, my word of advice to myself would be become a learn at all when it comes to investing. Just learn as much as you can to seek out podcasts, seek out books, learn from other people's investing journeys. So podcasts? Exactly. Just like this one? Yes. Thank you, Sophie and Maddie. I think creating content like this is such a gift for those starting out in their investing journey and has the opportunity to be really meaningful role in creating that next generation of investors out there. So absolutely learn it all. Listen to podcasts like this one. 

Sophie: [00:36:35] Well, thank you for the plug, Natalie. Appreciate it. Before we say goodbye, is there anything that you would like to plug? 

Natalie Collins: [00:36:41] Look, I think this is a great time for me to just revisit stop mate and let your audience know that that's a fantastic resource. If you know the keynote looking at potentially working at us at a start-up in the future. They've got a start-up idea that they'd like to bring to the table. Check them out at Stop Mate. They've got a number of different ideas. In fact, there's one today and a day of recording. So by the time these guys to may be the next one in six months time, they're great things to go along and listen to just to immerse yourself in the local start-up scene. 

Maddy: [00:37:11] Sounds great. Well, Natalie, thank you so much for joining us. It has been a very insightful effort. I'm sure that everyone will really enjoy it. 

Natalie Collins: [00:37:18] Thanks so much for having me, ladies. It's been a pleasure to join you. 

Maddy: [00:37:21] Thank you so much for joining us on our episode today. If you have any questions, please feel free to jump into our Facebook community group. YIGC Investing Podcast, Discussion Group or jumped on to our Instagram? We often have posts that will correspond with the episode and give you a little bit more information. And if you are enjoying these episodes, please feel free to share with a friend or write us a review so that we can find more people like you. See you next week.

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Meet your hosts

  • Maddy Guest

    Maddy Guest

    Maddy lives in Melbourne, works in finance, but had no idea about investing until she started recently. Her favourite things to do are watching the Hawks play on weekends, reading books, and she says she's happiest, 'when eating pasta with a glass of wine'. Maddy began her investing journey when she started earning a full time income and found myself reading about the benefits of compound interest in the Barefoot Investor. Her mind was blown, and she started just before the pandemic crash in 2020. What's her investing goal? To be financially independent for the rest of her life, and make decisions without being overly stressed about money.
  • Sophie Dicker

    Sophie Dicker

    Sophie lives in Melbourne, and enjoys playing sport, and then drinking red wine immediately after finishing sport. She works in finance, but honestly had no idea about investing until her partner encouraged her to start. She says, 'my interest has only taken off from there - I find it exciting… I mean who doesn’t like watching their money grow?' Her investing goal is to build the freedom to do things that she's passionate about - whether it be start a business, donate to causes close to her, or to take time out of the workforce to start a family. Right now, there’s no specific goal, she just wants to have the freedom when she'll need it.

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