Cloud technology platform Paloma Mobile has been announced as the first investment by female-focused angel investor network Scale.
Paloma Mobile’s first product, Photo Chat, is a photo sharing application with voice and text notes. It’s specifically designed for slower internet speeds and apps such as Instagram and SnapChat, giving it a strong advantage in emerging markets.
Scale has invested $655,000 in the start-up’s $1 million fundraising round. The funds will go towards new hires for the development team and marketing the app internationally.
Scale partner Laura McKenzie told Women’s Agenda sister publication StartupSmart Paloma Mobile was an attractive investment option because of the significant market opportunity and founder Jennifer Zanich’s track record.
“I presented a range of businesses at different stages to our investors, all across the start-up spectrum and this is the one that excited everyone,” McKenzie says.
She says it’s an exciting first investment for Scale, as it communicates their vision and ambition as an investment group.
“While women have a reputation of being risk averse this investment shows we do the background work, we make decisions and we do make investments. This is an important thing to demonstrate to entrepreneurs,” McKenzie says.
The Melbourne angel network now includes 36 investors, two of whom are based in Sydney and four “Scale male” investors.
There is also another start-up in the latter stages of Scale’s due diligence process and McKenzie says the pipeline is looking promising.
Telstra veteran and investor Deena Shiff will represent Scale on the Paloma board.
In a statement, deal leader Mary Beth Bauer said the Scale’s first deal had been a very rewarding exercise for the investors.
“The collaboration and skills we had on the team, and the global network we brought to the table allowed us to complete a thorough diligence in a very short time.”
Scale re-launches their investor forums on Monday with two start-ups presenting. They will begin to recruit a Sydney network later this year.