“When we think about the next few years, there is a wonderful runway to continue to invest, probably at several multiple above and beyond where we are today in terms of dollar values.”
Atlassian Ventures’ portfolio of start-ups include two Australian companies, Fine Software (which owns Jira spreadsheet app JXL) and access management software application Multiplier.
Other investments include employee engagement insights platform Productiv and security software company Snyk, which lets companies find and automatically fix vulnerabilities in their code.
Mr Sonefeldt, who until recently has been Atlassian’s vice president of strategy and business operations, said the fund’s three core focus areas were agile development, work management and IT service management.
Outside these fields, he said the corporate VC would also consider investing in start-ups playing in spaces such as product-led growth and diversity, equity and inclusion (DEI).
“An area that’s really hot right now in venture is product-led growth and Atlassian is the old pioneer,” he said. “We didn’t even know people were throwing around ‘PLG’ as an acronym until a few weeks ago, but it’s an interesting area, and it aligns well with our business model and customer base,” he said.
PLG companies rely on the product itself as the primary driver of customer acquisition, conversion and retention. Atlassian famously has a low-touch, low-cost approach to sales and marketing.
Atlassian Ventures portfolio companies receive mentorship from the Atlassian executive team and global exposure at its events, in addition to the capital.
“Every company has a product sponsor. We also have structured and consistent conversations,” Mr Sonefeldt said.
“A lot of time investors will talk to you when you’re raising a round and then disappear until they’re in town and want to chat over coffee, but that’s about it. There is a lot of guidance.”
While the tech sell-off has hit Atlassian, with its share price down 30 per cent in the last six months, Mr Sonefeldt was confident the sell-off would not result in down rounds in the private markets. However, he said it may compress multiples, tipping there would be fewer raises getting away at 100 times forward-looking revenue.
“Because the venture market is less liquid, it tends to trail the public markets,” he said. “It hasn’t impacted the value of our portfolio, but it’s something we’re attuned to.”
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