Judy Anderson-Firth has seen venture capital from both sides - as an ecosystem builder and now as a professional investor. That dual perspective shapes her approach to selecting venture capital funds, including her decision to back Skalata.

Fund investing vs solo bets

Anderson-Firth manages Euphemia on behalf of Dom Pym, the serial entrepreneur behind Pin Payments and Up Bank, Australia's first mobile-only digital bank. After Up's $116 million acquisition by Bendigo Bank in 2021, Pym established Euphemia as his family office with a clear mission: backing the businesses that help other startups succeed.

This "ecosystem infrastructure" approach means investing in the platforms, tools, and funds that power the next generation of Australian entrepreneurs.

While Euphemia invests directly into startups, Anderson-Firth allocates the majority of capital through venture funds - recognising that fund managers serve as critical infrastructure for the startup ecosystem. Her approach comes down to access and scale.

"Venture capital funds can make deals that we can't as individual investors. They have the ability to invest in companies beyond our reach, with networks, knowledge, and expertise in different verticals and regions that expand our exposure."

Anderson-Firth spreads investments across more than 20 funds to capture the power law dynamics inherent in venture capital.

"We're invested in over 20 different funds, both locally and abroad, across different stages. Sometimes, we even have indirect exposure through multiple funds, which can be beneficial. But it's worth it because it gives us exposure to almost every deal in the ecosystem."

The patient capital advantage

Anderson-Firth sees venture capital as a natural fit for family office investing, given the asset class requires patient capital that can withstand market cycles.

"Venture capital investments for Euphemia is a no-brainer. It's high risk, high reward, and that's the nature of the asset class."

Unlike many investors, family offices aren't constrained by external pressures or rigid exit timelines. This structural advantage becomes crucial when investments can take seven to ten years to mature.

"As a family office, we understand that these investments take time to grow. We're not bound by a set time horizon like traditional funds. We have the flexibility to wait for long-term returns."

Why timing matters less than consistency

Market timing often paralyses investors considering venture capital allocations. Anderson-Firth takes a contrarian view based on her experience across multiple market cycles.

"In an ideal world, macroeconomic conditions shouldn't really affect allocation to VC. When you invest in such early-stage companies, there's just not enough data or information to predict the next big success like Atlassian. It's all about staying consistent."

She sees market downturns as potentially advantageous for venture capital investors willing to maintain discipline.

"Market downturns can actually be great opportunities. Companies become more capital efficient and learn how to navigate challenges. The ones that come out on the other side become lean fighting machines and can skyrocket unexpectedly."

What Euphemia looks for in fund managers

Euphemia’s fund selection approach focuses on the human element - evaluating fund managers' capabilities and alignment with investor interests.

"We focus on the people behind the venture capital funds. Their track record, decision-making, and values are crucial factors for us. We want to invest in funds led by great individuals who align with our expectations."

This people-first approach extends to operational capabilities. She evaluates how fund managers support their portfolio companies, particularly during difficult periods.

"We value funds that take care of every company in their portfolio and work closely with founders throughout their journey."

When evaluating specific funds like Skalata, Anderson-Firth applies rigorous criteria around operational capability and investor alignment.

"I love the Skalata team! They're practical, diligent, and true to their word, which is something we highly value. They strike a good balance between considering what's best for investors and what's best for the company."

She also values fund managers who can expand her network and deal flow access.

"And let me tell you, Skalata is incredibly well-networked. Whenever I meet with Rohan, he's always asking if I've met certain people and suggesting connections. He's a super connector, always looking to bring people together."

Lessons for other investors

Anderson-Firth's methodology reflects a broader trend among successful entrepreneurs who've built and exited companies. They understand that backing the infrastructure layer - the fund managers who identify and support early-stage companies - provides better access to transformational returns than competing for individual deals. 

"We have a long-term perspective and aim to reinvest back into the next generation of Australian startups. We believe in the potential of the Australian startup ecosystem and want to contribute to its growth and success."

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