In a new strategy update, Frontier Digital Ventures has announced its withdrawing support of its remaining two tier 3 investments, carWangu and casaMozambique by providing no further funding and relinquishing its board positions.
The firm says its focus for 2018 is to progress its investments towards mature and profitable market leaders, while increasingly exploring the wide range of potential monetisation options.
carWangu and casaMozambique collectively generated A$46k revenue in 3Q 2017, and according to the fund, their performance has not met expectations therefore Frontier will retain its current equity interest in both investments but will provide no additional funding support in future and will also relinquish its board positions.
According to Frontier’s CEO and Founder, Shaun Di Gregorio: “2017 has seen our portfolio focus tighten with the exit of several tier 3 investments, and the acquisition of 4 tier 1 investments, including 3 leading Asian classifieds. Our bias towards property continues with new investments and the exercise of equity options in existing investments (e.g. LankaPropertyWeb, Propzy).”
Frontier expects to record a write-down in the current accounting period of approximately A$450k for CarWangu and approximately A$750k for casaMozambique to focus its time, funding and management on its tier 1 and tier 2 investments towards monetization and profitability.
The fund also appointed Anthony Klok as the new Non-Executive Chairman of Frontier. Mr Klok is a former Non-Executive Director of both Carsales and Seek and is currently an Investment Director of Ellerston Ventures with considerable experience in sourcing, negotiating and investing in online and technology companies.
Mr Klok is also the current Chairman of OpenAgent.com.au, Betfair Australia, and Zoom2u and an alternate Director of Genero.
“We are absolutely delighted to appoint Anthony Klok as the new Chairman of Frontier. Anthony brings significant online classifieds experience as a former Director of Carsales and Seek – being highly complementary to our own experience at REA and iProperty,” said Frontier’s CEO and Founder, Shaun Di Gregorio.