TLDR:
Key Points:
- Blackbird Ventures’ decision not to reinvest in start-ups like Bardee, EntryLevel, Alts.co, Ao Air, and Black.ai can influence other VC firms.
- Blackbird operates under the tagline of “wild hearts”, investing in a small number of start-ups in its portfolio that are growing well while cutting off others from cash.
Australian start-ups are being warned that receiving funding from big-name investors like Blackbird Ventures can turn sour if these investors lose faith in them. Blackbird’s strategy involves continuing funding for start-ups that are performing well while cutting off others, a move that has spooked potential new investors. Other VC firms have admitted to avoiding backing start-ups that have been discarded by Blackbird.
Companies like Bardee, EntryLevel, Alts.co, Ao Air, and Black.ai have approached their situations differently after not receiving extra funding from Blackbird. While some have abandoned venture capital, others have relied on their communities for support. Blackbird’s decision not to “follow on” with certain investments has been perceived as a negative signal by the industry.
Overall, Blackbird Ventures’ approach to investment has implications for the Australian start-up ecosystem, shaping how other VC firms make investment decisions and impacting the future of these start-ups.
