Bubble Gum Interactive, an independent developer of children’s online games, announced today that it has received investment from the Sydney Angels Sidecar Fund of $200,000. This is the first investment made by the fund, co-investing an amount alongside angel investor members of Sydney Angels.

The Sydney Angels Side Car fund is the first of its kind in Australia. The fund has an exclusive co-investment arrangement with Sydney Angels and will co-invest with members of Sydney Angels in eligible deals they invest in. Earlier this year the fund achieved its first close at $10M and unconditional registration as an Early Stage Venture Capital Limited Partnership, a structure which provides tax free returns to investors in the fund. The Sydney Angels Sidecar Fund is managed by Proto Investment Partners, in close collaboration with Sydney Angels.

Bubble Gum Interactive will use the investment to finalise development of “Little Space Heroes”, an original virtual universe for kids and families.

In this story-driven online game players create their own Space Hero and embark on an intergalactic adventure. Featuring character personalisation, solo and team gameplay, quests and community activities, Little Space Heroes offers kids a safe environment to explore, make new friends and have fun online. Right now, kids may create their own hero at www.littlespaceheroes.com and undertake Hero Training. Through playing fun mini-games, kids will learn to master their Jetpacks, Bubble Blasters and Starjets and be ready to blast off for adventure in the upcoming beta.

Bubble Gum Interactive was founded by children’s entertainment and gaming industry veterans. This team has extensive experience in game development, children’s entertainment, business planning, production and project management, research and design, licensing, marketing, sales and community management.

Bubble Gum Interactive Executive Producer and Technology Director Phil Mason said “We thank Sydney Angels and the Sydney Angels Sidecar Fund for their support of Bubble Gum Interactive. Their investment demonstrates the strong business potential of Little Space Heroes, our new virtual world for kids under 12.”

Jeremy Colless, a member of Sydney Angels and Managing Director of Proto Investment Partners, the Fund Manager of the Sidecar Fund said “Bubble Gum Interactive has created an amazing new gaming experience with enormous global potential. They have an excellent team covering creative, technical and business disciplines and are targeting a market that continues to grow very quickly.”

The Little Space Heroes free online virtual world for kids will be launching worldwide in late 2011.

About Bubble Gum Interactive

Bubble Gum Interactive is an independent virtual worlds and games studio headquartered in Sydney, Australia. Our mission is to create compelling and engaging gaming experiences with a focus on creativity, fun and entertainment value that help kids discover every day. Find out more about us at www.bubbleguminteractive.com.

About Sydney Angels

Sydney Angels is the leading angel investment membership group in Sydney. It is run as a not-for-profit membership organisation for its angel investor members. Members seek to invest in innovative early-stage ventures (usually Sydney-based). Sydney Angels helps its members connect with and invest in good deals and entrepreneur teams, by providing a professional and collaborative environment and disciplined investment processes. Find out more at www.sydneyangels.net.au.

About Proto Investment Partners

Proto Investment Partners is a specialised alternative investment manager, with offices in Sydney and Melbourne, focused on angel investments and early-stage venture capital. It is the licensed manager of the Sydney Angels Sidecar Fund. Find out more at www.protoinvest.com.

Tapit Media Pty Ltd (Tapit), a new Near Field Communications (NFC) content delivery startup, has closed  it’s seed funding round from Sydney Angels in record time for the investment group. It only took 22 calendar days from it’s pitch to Sydney Angels Investors until the full Seed Round was subscribed for.

Andrew Stead Co-Founder of Sydney Angels said “Sydney Angels is focused on introducing quality deals to early stage investors. The Investment in Tapit was Sydney Angels tenth and fastest. The speed was testament to the opportunity and fit between the business and the investors. ” One of the Tapit Investors from Sydney Angels, Serial Entrepreneur David Cunningham commented “After 9 long months of seeking my next business venture in Sydney, Tapit Media stood out as an opportunity I just could not miss – in a sector that defines innovation and growth.”

Already Tapit has launched it’s third Out Of Home advertising  campaign with JC Decaux in less than a month. Nova Radio was the first such Tapit NFC enabled campaign in Australia closely followed by Channel 10 – Renovators and QVB Shopping Centre which is in market  again next week.

Jamie Conyngham, the CEO of Tapit said “ the speed in which this round was closed is an  endorsement of the Tapit team and the business models we have created around our unique NFC enabled  technology. Everyone we meet loves the idea of Tapit, it’s addictive ”.

Tapit (www.tapit.com.au) Tapit was founded in March 2011 and is headquartered in Sydney, Australia. Its vision is to revolutionise the way people use their mobile phones by simplifying the delivery of content using NFC as the enabler. Tapit works with innovative agencies, brands, handset manufacturers and carriers to bring this vision to life.

Sydney Angels (www.sydneyangels.net.au) is the leading angel investment membership group in Sydney. It is run as a not-for-profit membership organisation for its angel investor members. Members seek to invest in innovative early-stage ventures (usually Sydney-based). Sydney Angels helps its members connect with and invest in good deals and entrepreneur teams, by providing a professional and collaborative environment and disciplined investment processes.

Proto Investment Partners (Proto) and Sydney Angels are pleased to announce a successful $10 million capital raising for the Sydney Angels Sidecar Fund (Fund). The Fund will remain open to investment for another 3 months and will close with a maximum of $15 million capital. Proto is the manager of the Fund, which will co-invest with Sydney Angels’ members in early-stage ventures.

Proto and Sydney Angels are also delighted to welcome M.H. Carnegie & Co. as an investor in the Fund and as a partner targeting larger co-investments. Proto Director Jeremy Colless said “The participation of MH Carnegie & Co as an investor in the fund is a validation of the Sydney Angels ability to attract, mentor and invest in the highest quality Australian early stage ventures. The Fund will commit around 50% of its capital to second round investments in early stage ventures. The added draw of larger co-investments by MH Carnegie & Co, in addition to the Fund’s investments, will provide a compelling alternative for Australian early stage ventures that currently are forced to head offshore for later capital rounds.”

The Fund’s exclusive partnership with Sydney Angels capitalises on the angel group’s deal origination, deal evaluation and deal management processes to access high quality early-stage investment opportunities. An arrangement between a fund and an angel group such as this is commonly referred to as a “sidecar fund”.

The investors in the Fund include a diverse mix of Sydney Angels’ members, individual angels as well as domestic and international sophisticated investors.

Sydney Angels Co-founder and Proto Director Vivian Stewart says it is a landmark event for the angel sector in Australia, “One of the challenges entrepreneurs typically face is simply raising enough money to reach relevant milestones. A second challenge lies in trying to source follow-on funding without being distracted from executing the business plan. We believe the Fund will address both these issues by increasing the available pool of capital at the angel stage.”

The Fund expects to invest in 25-30 early-stage companies over the next 5 years. The Fund plans to make investments ranging in size from $100,000 – $500,000 (including follow on investments). Ventures interested in applying for funding should submit an application via the Sydney Angels website.

The Fund:

• provides investors with access to a unique flow of early-stage (angel) business investments sourced, screened and co-invested by Sydney Angels’ members;
• provides investors with portfolio diversification from traditional equity and fixed income investments;
• supports entrepreneurs, job creation, innovation, new business ventures and economic growth, and a vibrant early-stage venture community in Australia; and
• will achieve unconditional approval as an ESVCLP from Innovation Australia providing investors with tax free returns.

Proto Investment Partners (www.protoinvest.com) is a specialised alternative investment manager, with offices in Sydney and Melbourne, focused on angel investments and early-stage venture capital.

Sydney Angels (www.sydneyangels.net.au) is the leading angel investment membership group in Sydney. It is run as a not-for-profit membership organisation for its angel investor members. Members seek to invest in innovative early-stage ventures (usually Sydney-based). Sydney Angels helps its members connect with and invest in good deals and entrepreneur teams, by providing a professional and collaborative environment and disciplined investment processes.

Mark Carnegie is Principal of M.H. Carnegie & Co. He was previously Head of LCW Private Equity, in Lazard’s Australian private equity business. Mark co-founded Carnegie, Wylie & Company, one of Australia’s leading independent corporate advisory and investment firms. Carnegie, Wylie & Company was acquired by Lazard on 31 July 2007. Mark has had a near 25 year career as an investor and corporate adviser in New York, London, and Sydney.

A Power of Angel Investing  workshop will be held on the 30th April. To register your interest – click on attend event on the right.