Digital entrepreneur and founder of Destra, Domenic Carosa is in control of a listed pooled development fund (PDF) which will form the crux of his new venture, an investment platform for online “up-starts”.
Carosa this week got the green light from the shareholders of the Future Capital Fund which is listed in the Australia Pacific Exchange for his off-market takeover bid of 5c per share or $625,000.
Carsoa mounted the takeover offer in conjunction with software entrepreneur Danny Wallis the principal of D.S.A.H Holdings.
“This is something that I have always wanted to do and the fund gives us the structure and the capacity to invest in internet up-starts,” Carosa told Digital Media.
He describes the fund as a venture accelerator, or a cross between a venture capital and a private equity firm. The PDF scheme was created by the Australian Government to incentivise investment in emerging companies and foster innovation by providing generous tax breaks such as 15% income tax and no capital gains tax.
Carosa and Wallis have hit the ground running with the venture planning to raise another $500,000 before Christmas starting the fund with a pool of $1 million. While not ready to disclose who will be investing in the fund yet, it is anticipated that a raft of high level online executives will emerge as backers.
After the initial capital raising, Carosa will de-list the fund by the end of the year with the short term goal of raising $2-$3m over the next 18 months, leading to an eventual ASX listing once the fund has raised around $20 million within three years.
He already has his eye on three or four investments all in the digital media space including a domain name company and a youth-oriented advertising enterprise. Carosa¹s definition of an up-start is an online focused company that is already holding its own operationally, has been in the market for at least 12 to 24 months with an existing revenue stream and customers, has implemented a low touch business model, is local but has global potential and it “makes money while you sleep”.
Carosa and Wallis will take a portfolio approach to investments, keeping investments distinct with separate management teams in place. “We will be involved in each company as we grow them and rolling up our sleeves, this will not be a passive investment,” Carosa said.
He is undeterred by the current financial climate maintaining that a downturn is the best time to invest, nor is he fazed by the substantial work ahead before the end of the year. “I’m a workaholic and I am always on the run and loving it,” he said.
Carosa will continue to work separately on the existing projects that he has invested in under Dominet Digital including MP3.com, Mailinglists.com and his latest investment LegalWill.com.au, an online lodgement system for wills and other essential legal documentation. He is also maintaining his ”watching brief” on the receivership of Destra and is still looking at opportunities within the group.
