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Scalare Ventures (ASX: SCP), a listed investment firm that also owns Tech Ready Women and the Australian Technologies Competition, will acquire online fundraising marketplace Inhouse Ventures (IHV) in a deal worth $1.7 million if revenue targets are met over the next couple of years.
Founded in 2022 by its CEO Elliot Spiegel who previously co-founded GiveShop and bootstrapped growth marketing agency Inhouse Digital, Inhouse Ventures helps match entrepreneurs with investors and is used by more than 10,000 founders, leaders, venture capital (VC) funds, family offices and private equity firms.
Since November 2023 Scalare has already held a 20.7 per cent stake in Inhouse, which it describes as one of Australia's premier platforms for technology founders with a mission to "accelerate founders at critical stages of their growth journey, providing tailored solutions to support fundraising, scaling, and business development".
Scalare expects to finalise an acquisition of all remaining Inhouse Venture shares in five days' time by issuing $1 million worth of SCP shares to the company's four non-Scalare shareholders, in addition to a $233,331 upfront cash consideration to Spiegel.
Spiegel will also receive a further $433,331 in total deferred consideration if revenue targets are met through to 30 June 2027, which will progressively rise from $360,000 in revenue in the current financial year to $1.08 million in FY27.
Based on the December half, Inhouse is sitting on a current annualised revenue profile of $212,544 and made a small profit before tax of $10,886 for the six months. It has no debt and holds cash reserves of $83,095.
"This acquisition represents an exciting step forward for Scalare," says Scalare Partners CEO Carolyn Breeze.
"Inhouse Ventures has built an impressive platform that aligns perfectly with our mission of supporting technology founders at every stage of their journey.
"We look forward to working with Elliot and the IHV team to drive even greater impact in the startup ecosystem."
Spiegel says joining forces with Scalare is a "natural evolution" for Inhouse Ventures.
"Our platform and services complement Scalare’s mission, and together we will be able to offer even greater support to founders looking to scale their businesses," he says.
"I’m thrilled to continue leading IHV and look forward to what we can achieve together."
The deal represents Scalare's third acquisition since founding in 2020, and its first as a listed company following its backdoor listing on the ASX last year through a share offer at $0.25 per share.
Since then shares have fallen to $0.13 despite doubling its revenue in the December half to $1.3 million. The company reported negative EBITDA of $307,186 for the period but it would have been in the black if not for almost $1 million in one-off costs relating to the reverse takeover and compliance fees.
Scalare has a portfolio of 27 companies valued at $10.7 million and aims to invest in eight startups per year at an average of $150,000 and a maximum of $250,000. The company has achieved three full exits to date including the sale of fintech Cape to the UK's Anna Money with Scalare's consideration paid in equity shares in the parent company.
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