Newsletter ➢ ᴀFKAғ•2020#20

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26 June 2020 #20 In our strategy review, we decided to go earlier. Andy, Glen, Jai and Phil are doing exactly that and make Chatterize our #22 portfolio company. Welcome Lane, Bel and Miles! StretchSense Kami Aisleworx Fuel50 Datagate DebtorDaddy Techion iDefigo Uproar Moxion NexTransfer Wherewolf Hot Lime Labs FileInvite Spoke Phone Vesper Marine FormusLabs Narrative Muse Hivemind Chnnl Eight360 Kami is FKA's #02 portfolio company with over nine million users and hiring. Hengji, Jordan and Alliv have built a digital classroom platform that has become even more relevant with the Covid19 regime. Go, team! David is our investor rep for Kami and now US-based. AANZ announces changes at NZGCP. Annual investment cap up from $12m to $20m, Maximum investment per company up from $1.5m to $2.5m, 1:1 matching for government to private capital now up at 2:1, Aspire forthwith free to co-lead or lead deals. LOL! Christoph Janz brought you Five Ways to Build a $100M Business last week. This week he talks about raising in a pandemic in this video! James is our new poster boy for ADI on the ADI.Clinic/KPMG landing page. He clocked up 33+ likes and numerous comments on LinkedIn with this fabulous picture. But will Alex beat him? Philippe of TAO Performance drove down all the way from Pahia for his ADI session yesterday. He left satisfied with the advice and connections from 7 mentors in the room and a further 4 online. AWESOME! KONEI is Aotearoa’s Marketplace for Aotearoa’s brands, it’s like an online Kmart BUT exclusively features and sells Aotearoa brands. This LinkedIn post gives more on who is behind it. Lawrence is crazy about kite surfing, not as crazy as Richard Bransonbut then others say nobody is crazier than Lawrence. He teamed up with Liquid Force. Great gear and more! Could be another 50 Angels event? Hit him up for a deal or become a kiteboarding ambassador! You can still register to watch! Real VCs giving real reactions in this live Zoom session - not made for television, not for entertainment! No BS from Marvin Liao and the other investors on this panel. Remember Marvin's candid talk with Rudi last year? The top earner in 2019 in Germany is not from SAP, Siemens, Deutsche Bank or Bayer. It is Oliver Steil [steil = steep] from Teamviewer, makers of remote desktop software and recently listed on the new SME exchange. His salary is €41.3m (NZ$75.3). Read the full article in the language of economic power. Good to know that FKA has more German Angels than most. NBR extract 2 June 2020. Lesson 3. Allocations in capital raisings are becoming more transparent. In sharemarkets, one of the most mysterious places is the broker’s ‘bookbuild’ room. This is the place where investment bankers, alongside the companies issuing the new shares, decide who gets what. You might imagine that this is an orderly procedure, but the stakes can be very high and the feedback is that it is more like a scene of chaos where wild promises of lavish future commissions and clients’ loyalties swirl and pitch through the wee small hours. Investors will beg, plead, and demand, sometimes all three in one phone call, to be ‘looked after’ and receive a good allocation from the ‘bookbuild’ room. Even after the fact, it can be very unclear what percentage allocation is a good or bad one. Now, however, the world appears to have changed. Stock exchanges are now demanding that allocations will, in the first instance, be determined by how many shares investors own of the company when the capital raising is announced. A pro-rata approach is transparent and sensible and how it should always have been, it is just not as interesting a process. Note: For startups in New Zealand the pro-rata principle is generally standard for all follow-on rounds. It can make it hard to bring in new investors to widen the shareholder base but does reward the bravery of the earlier investors who were willing to shoulder much more of the early stage risk.