Skip Capital

What they fund

Skip Capital funds technology and infrastructure companies, typically at the seed and Series A stages. They focus on Australian startups with global potential, particularly in IoT, semiconductor, and workplace technology. The firm also invests in core-plus infrastructure assets, including decarbonisation projects. [1]

• Technology Startups — Backing seed and Series A technology companies, such as IoT and semiconductor startups like Morse Micro. [2]
• Infrastructure Assets — Investing in core and core-plus infrastructure, with a focus on decarbonisation and long-term outlooks. [1]
• Australian Companies — Primarily focusing on Australian startups with global expansion potential, as seen in investments in Culture Amp and Morse Micro. [2]
• Enterprise Solutions — Supporting companies that help large enterprises solve problems, leveraging the team's management consulting experience. [1]

Credibility: The firm's website and external articles confirm their focus on Australian technology and infrastructure investments at early stages. [1][2]

Investment thesis

Skip Capital operates as a private fund with a dual mandate: investing in technology ventures and long-term infrastructure assets. The firm leverages a team with deep backgrounds in investment banking, startup operations, and infrastructure finance to back companies solving complex problems. Their approach combines venture investor experience with a passion for long-term infrastructure outlooks, aiming to help large enterprises solve problems through technology and infrastructure investments. The firm's strategy is rooted in helping large enterprises solve problems as a management consultants and previous experience as a startup operator, while also focusing on decarbonisation and core-plus infrastructure assets. [1]

• Dual Mandate — Investing in both technology startups and infrastructure/real assets, leveraging a team with complementary expertise in venture and private markets. [1]
• Infrastructure Focus — A passion for investing with a long-term outlook, focusing on core and core-plus infrastructure markets, including decarbonisation assets. [1]
• Venture Approach — Backing technology companies with a focus on helping large enterprises solve problems, drawing on team experience as startup operators and management consultants. [1]
• Team-Driven — The firm's strategy is heavily influenced by the co-founders' backgrounds: Kim Jackson (ex-investment banker, engineer) and Scott Farquhar (Atlassian co-founder), providing deep networks and operational insight. [1]

Credibility: The firm's website details its dual mandate, team backgrounds, and specific focus areas like decarbonisation and core-plus infrastructure, confirming the thesis. [1]

Value add

Skip Capital offers deep operational expertise, leveraging the team's backgrounds in investment banking, startup operations, and infrastructure finance. Co-founder Scott Farquhar provides mentorship and network access through his experience as an Atlassian co-founder. The firm also supports portfolio companies with strategic guidance on scaling and enterprise solutions. [1]

• Operational Expertise — The team's experience in investment banking, startup operations, and infrastructure finance provides valuable strategic guidance. [1]
• Network Access — Scott Farquhar's network as an Atlassian co-founder offers portfolio companies access to potential customers, partners, and follow-on investors. [1]
• Strategic Guidance — The firm's management consulting experience helps portfolio companies solve complex problems and scale effectively. [1]

Fit verdict: Skip Capital is a strong fit for Australian technology and infrastructure startups seeking operational expertise and network access. [1]

Founder diligence script:

• What specific operational support can Skip Capital provide to help us scale our technology product? [1]
• How does the firm leverage Scott Farquhar's network to open doors for portfolio companies? [1]
• What is the firm's approach to supporting decarbonisation infrastructure investments? [1]

Portfolio focus

Skip Capital has invested in Australian technology and infrastructure startups. Notable portfolio companies include Culture Amp, a workplace analytics platform, and Morse Micro, an IoT semiconductor startup. The firm also supports companies like SafetyCulture and Pledge 1% through mentorship and investment. [2]

• Culture Amp — A workplace analytics platform that raised US$82m in 2019, with Skip Capital as an investor. [2]
• Morse Micro — An IoT semiconductor startup that secured $23.8m in Series A funding, with Skip Capital participating. [2]
• SafetyCulture — A startup mentored by co-founder Scott Farquhar, indicating a potential investment or close relationship. [1]
• Pledge 1% — A company founded by Scott Farquhar, suggesting a strong network and potential investment ties. [1]

Credibility: The firm's website lists team members and their backgrounds, while external articles confirm investments in Culture Amp and Morse Micro. [1][2]

Notable investments & exits

Skip Capital's notable exits are not explicitly disclosed, but the firm's portfolio includes companies like Culture Amp and Morse Micro, which have raised significant funding. Culture Amp's US$82m raise in 2019 indicates a successful growth stage, while Morse Micro's $23.8m Series A suggests early-stage success. The firm's focus on long-term infrastructure investments may result in fewer traditional exits, with a focus on sustainable value creation. [1]

• Culture Amp — Raised US$82m in 2019, indicating a successful growth stage and potential future exit. [2]
• Morse Micro — Secured $23.8m in Series A funding, suggesting early-stage success and potential for future growth. [2]
• SafetyCulture — Mentored by Scott Farquhar, indicating a potential investment and future exit potential. [1]

Credibility: The firm's website and external articles confirm investments in Culture Amp and Morse Micro, indicating potential for future exits. [1][2]

Strategic implications

Skip Capital's dual mandate of technology and infrastructure investments positions it uniquely in the Australian market, allowing it to leverage synergies between the two sectors. The firm's focus on decarbonisation and core-plus infrastructure aligns with global trends towards sustainability, potentially attracting ESG-focused LPs. Skip Capital's reliance on co-founder Scott Farquhar's network is a strength but also a risk, as his departure could impact the firm's deal flow and reputation.

Where they could go further

Skip Capital should consider expanding its geographic focus beyond Australia to access larger markets and diversify its portfolio. The firm could enhance its value proposition by establishing a dedicated fund for decarbonisation infrastructure, attracting ESG-focused LPs. Skip Capital should develop a more structured mentorship program for portfolio companies, leveraging the team's operational expertise.