Atlassian Venture will invest between US$250,000 and $6 million in exchange for equity
Sydney, Australia-based tech company Atlassian, which provides team collaboration and development softwares, announced the launch of Atlassian Ventures, a US$50 million fund aimed at strengthening its global developer ecosystem, Atlassian Corporate Development Head Chris Hecht announced in a blog post on Wednesday.
Atlassian Ventures aims to invest in three main types of companies, the blog post noted.
- Early-stage investment startups building apps for Atlassian’s cloud products including Jira, Confluence, Bitbucket, and Trello;
- Established ecosystem partners looking to scale their business, similar to Atlassian’s investment in Zoom, Slack, InVision, process.st, and Split.io; and
- Members of the Atlassian Partner Program looking to expand their cloud services or create new products to facilitate workplace collaboration.
In addition to the financing, entrepreneurs will also receive mentorship from Atlassian’s executive team, and global exposure at Atlassian events, Hecht noted.
Atlassian Venture’s non-negotiable standard investment terms include an investment of $250,000 convertible note with a cap of $6 million, and a valuation discount rate of 20%, according to its website. The fund is currently accepting startup applications on a rolling basis, the website adds.
For large, established ecosystem partners, Atlassian Ventures will make investments in partnership with traditional venture capital firms, the blog post noted.
The developer ecosystem plays a crucial role in Atlassian’s success. With developers building on top of Atlassian’s products, the company focuses heavily on developing its cloud-based solutions, the new fund’s website notes.
“As more and more customers transition to our cloud products, we are committed to supporting their journey by fostering a robust ecosystem of cloud-based apps that enhance their experience and satisfy all use cases,” Hecht wrote.
Atlassian already has over 4,200 apps available on its Marketplace and offers integrations with popular tools like Slack, Zendesk, and GitHub, the blog post noted.
“Atlassian Ventures will facilitate our continued investment in the best-of-breed tools and integrations our customers need to fuel the next wave of innovation and manage their work, both now and into the future,” Hecht added.
Atlassian has carried out a string of acquisitions over the last 12 months. The company acquired Code-barrel, the startup behind Automation for Jira, in October last year, followed by conversational ticketing and help desk startup Halp in May this year, and lastly, Sweden-based Mindville, an asset and configuration management company in July.
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