FAQs
Have questions? You’re in the right place! This FAQ page is designed to help you quickly find answers about our services, policies, and more. We’ve gathered the most common questions and provided straightforward answers.
If you don’t see what you’re looking for, feel free to reach out—we’re always here to help!
Do I need to be a Sophisticated Investor to invest?
Yes! To invest with MooCoo Ventures you need to be classified as Wholesale / Sophisticated by obtaining a certificate from a qualified accountant stating that you are considered a ‘sophisticated investor’ for the purposes of Chapter 6D under the Corporations Act 2001. A person is eligible if they have either of:
- Gross income of $250,000 or more a year in each of the past 2 years
- Net assets of at least $2.5 million (reg 6D.2.03 and reg 7.1.28)
- You can read more on this issue on the ATO’s website (Link to ATO’s website)
Who are these type of investments suitable for?
MooCoo Ventures is only open to qualified wholesale investors. It’s best suited to those who:
- Understand and accept a high level of risk, including losing some or all of what they invest
- You may need to leave your investment in place for many years. These investments are illiquid and generally cannot be sold until the company is sold, lists, or completes another liquidity event.
- Seek investment strategies that are normally reserved for institutional investors only
What are the benefits of investing in unlisted companies?
Investing in unlisted companies provides access to private-market opportunities not available through public exchanges. It enables portfolio diversification and exposure to early-stage businesses with high growth potential. These investments are high risk: most early-stage investments lose money; a few return many times over.
How do you communicate with syndicate members and report on portfolio progress?
We email you when a new deal is available for investment, and forward each company’s shareholder updates as they arrive. We maintain transparency by providing clear points of contact and we use a dedicated platform (the Investor Hub) for you to track all aspects of your investment portfolio, with a formal statement at the end of each financial year. This approach ensures that syndicate members stay informed and engaged throughout the investment lifecycle.
What Fees apply to investments?
MooCoo’s standard fee structure is as follows:
- Upfront Investment Fee: 6% + GST, charged at the time of investment.
- Onboarding Fees: No onboarding fees are charged to join the syndicate.
- Annual Fees: None.
- Performance Fees: Investors pay no additional fees if the investment does not generate a positive return.
If the investment is successful, MooCoo charges 15% + GST carried interest on realised gains (12% + GST on Angelmatic®).
This structure is designed to align MooCoo’s incentives with investor outcomes.
What is Deal Carry?
Deal carry refers to a performance-based fee that is charged on a per-investment basis when a specific deal generates a positive return for investors. It’s not only compensation for the manager’s expertise, but also a mechanism to align the manager’s interests with those of the investors.
Carried interest is a share of the net profits that is distributed to the manager after the investors have received their initial investments back. The distribution of carried interest usually follows a “waterfall” model: investors first recover their capital contributions. Subsequently, any additional profits are split between the manager and the investors according to the terms set out in the management agreement agreement.
What is a SAFE?
A SAFE note, which stands for Simple Agreement for Future Equity, is a financial instrument commonly used by startups to raise early-stage capital from investors. With a SAFE note, an investor provides funding to a startup in exchange for the right to convert that investment into equity (shares of the company) at a future date, typically during a subsequent financing round, company sale, or IPO.
Unlike traditional debt instruments such as convertible notes, SAFE notes do not accrue interest and have no maturity date, meaning the startup is not required to repay the investment unless it converts into equity. This makes SAFE notes simpler and more founder-friendly, reducing legal complexity and negotiation time.
What is a Convertible Note?
A convertible note is a short-term debt instrument issued by a startup to investors, which can later be converted into equity (ownership shares) in the company, typically during a subsequent financing round or exit event such as an acquisition or IPO.
Key Features of Convertible Notes:
- Short-Term Debt: Initially, the convertible note functions as a loan, with a principal amount and an interest rate. The startup is expected to repay the principal plus interest if the note is not converted to equity.
- Conversion Trigger: The debt converts into equity (such as preferred stock) when specific events occur, most commonly a qualifying financing round (like Series A), an acquisition, or an IPO.
- Valuation Flexibility: Convertible notes allow startups and investors to setting a company valuation until a later, more established stage, which simplifies early-stage fundraising.
- Conversion Terms: The note may include a valuation cap (a maximum valuation at which the note converts) and a discount rate (a lower price per share compared to new investors), both designed to reward early investors for their risk.
- Maturity Date: The note has a maturity date by which the startup must either repay the loan (with interest) or convert it into equity, depending on the terms agreed.
How is MooCoo different from Brisbane Angels?
Different models – Same mission.
Brisbane Angels
- A not-for-profit, membership-based angel group.
- Designed for investors who want to be hands-on.
- Members contribute time to sourcing, screening, due diligence, and mentoring.
- Strong social and community focus, with pitch meetings and dinners, ten a year.
- Suited to those with time and interest; part investing, part community engagement.
MooCoo Ventures
- A syndicate platform offering curated deal flow.
- Suited to investors who are Time-constrained and seeking deal-by-deal flexibility.
- We work very closely with Brisbane Angels and as well as other venture firms.
- Delivers quality deals and diligence, with far less personal involvement required.
Bottom Line
- Brisbane Angels: community, learning, and active involvement
- MooCoo Ventures: access, efficiency, and convenience
Brisbane Angels and MooCoo suit different circumstances. Both reach the same funded companies, so there is little purpose in being part of both at the same time.
How can founders apply for funding?
Here’s the best way to apply:
Brisbane Angels Application – Apply Here
Today, every MooCoo Ventures deal comes through Brisbane Angels. Companies reach Brisbane Angels in several ways: some apply directly through its website, and many are introduced — venture funds, other angel groups and founders often contact Richard or Brian first. Every company then goes through the same Brisbane Angels screening and pitch process, and members decide which deals go forward.
If you’re unsure which route is best – Apply Here. Or just reach out, we’ll respond to every genuine enquiry.