Venture Capital
Issue No. 1 - July/August 2001
Diverse Interests
First Pacific Capital began life three years ago as a ‘pure’ venture capital firm, but has since diversified to advantage. Property development is a main line of business; First Pacific has managed finance for the Allegro hotel project now under development in Adelaide’s CBD, and for the former ETSA headquarters makeover — 200 residential units to be finished late this year, or early 2002 by its new, local owners.
“Government grants stimulated growth in the construction industry which has lagged until now,” says Silvio Molinara. He watches these trends because First Pacific started moving into property finance when venture capital enquiry stalled in the wake of ‘tech wreck’ in the USA.
“Enquiry dropped off — it has been a very difficult market for venture capital as investors reexamine their strategies. Twelve to 18 months ago investors were looking at putting their money into tech stocks and startup companies. When the stock market hammered them, the effects flowed through to venture capital.
“Investors are being very selective. Where we used to see one in 100 deals being funded, now it’s more like one in 500.”
Silvio expects the next six months to a year to be ‘interesting’ as Australian interests look to the US for leadership. “There is a lot of caution [in the USA] particularly in the ‘angel’ sector of the stock market,” he says.
Silvio considers the Australian investment market to be ...
