Nexxt Ventures
Stewards of small to medium enterprises, fostering long-term business growth and stakeholder prosperity.
Our process
Every situation, organisation and team is unique.
Our approach delivers outcomes that are tailored to your specific goals, requirements, and constraints.
Our team brings a wealth of experience and well-developed practices to the table, but we certainly don’t know everything. We appreciate that you know your own business better than anyone else. You don’t expect us to tell you how to run it - rather, you are looking for ways to improve performance and want a partner who can help make it happen.
Our Assess, Plan, Deliver approach allows us to "knowledge-up" on your unique circumstances, so that we can apply our specialist expertise in concert with your existing capabilities to deliver the outcomes that you need.
1. Assess the situation
In the first stage, we aim to understand all of your needs and the context you work in. We consider the actors and stakeholders as well as any constraints of a potential solution.
If we haven't worked with you before, we also learn about your story – how your organisation came to be, your values, vision and where you are headed – so that we can work with empathy and understanding.
With this understanding of your context and situation, we identify the potential opportunities for delivering on your needs and present our preliminary findings.
2. Plan the solution
In the second stage, we work with your team to develop a roadmap and statement of work that clearly outlines the objectives to be achieved, the work to be undertaken, and the outcomes you can expect from the engagement.
We offer a range of engagement models, including fixed price, time and materials, shared risk and ongoing retainer, depending on your preferences and the particular requirements.
Once the roadmap, statement of work and engagement model are agreed, we move to the deliver phase.
3. Deliver the project
In the third stage, we do the “heavy lifting” to deliver on your needs according to the agreed outcomes in the plan.
Our delivery approach is transparent, collaborative and objective. We are always focused on the outcome, assessing progress not by how much work we have done, but how much of the requirements we have delivered.
We are only “done” when we have delivered on the outcomes agreed in the plan.
Depending on your needs and the chosen engagement model, the Assess, Plan and Deliver process may be a single engagement or a continuous cycle.
Permanent Capital
We invest in & acquire successful SME businesses: preserving their legacy through sustainable growth
Nexxt Ventures is a Holdco that provides like-minded individuals with the opportunity to partner in owning and running a portfolio of SME businesses, with the objective to grow them over a 10-20 year-plus horizon – colloquially known as Permanent Capital.
Unlike the traditional Venture Capital model, we acquire existing well-run businesses to hold and grow - businesses that will provide solid returns over time. There is no defined exit horizon – our approach is designed to provide a steady stream of dividend income to shareholders, balanced by reinvestment of a proportion of retained earnings to fund the continual growth of each business.
Our Operating Models
At Nexxt, we operate under two distinct engagement models:
- Strategic Investor Partnership
- Business Acquisition
Strategic Investor Partnership
Under the Strategic Investor Partnership model, investee businesses leverage Nexxt's deep experience and talent pool to help scale the business beyond its current capability and capacity.
The typical investee business has been in operation for 3-5 years, with a solid business model that is delivering consistent profits, but is unable to scale to its full potential. This may be due to one of more of the following constraints:
- Lack of capital to expand operations
- Systems are predominantly manual / paper-based / spreadsheets, resulting in limits to growth and scalablity
- Difficult to scale due to limited capability/experience in one or more key areas of the business (such as Finance, HR, Sales, Marketing, IT, Logistics, etc)
Under this model, Nexxt engages in one of the following ways:
- Sweat Equity: the business owners agree to engage Nexxt Ventures for specified deliverables in exchange for an agreed equity share in the business
- Capital Injection: Nexxt provides capital to the business (in the form of equity or a loan)
- Joint Venture: the business and Nexxt create a new entity that delivers a new channel to market for the business
Business Acquisition
Business Acquisition, as the name implies, involves Nexxt forming a dedicated investment vehicle to purchase the business, with the objective of holding and growing the business over a 10-20 year plus time horizon.
The typical investee business has been in operation for 10-15+ years. The owners have created an amazing business that they would love to see continuing in its current form, but they no longer have the capacity to run it themselves. They may be looking for a 'clean exit', or alternatively may wish to keep some equity in the business post-sale.
Target Industries
- B2B and B2C
- Technology and Information Services
- Business Services
- Home Services
- Niche Manufacturing
- Consumer Products
- Wholesale & Distribution
- SaaS
Geography
- Businesses operating out of Melbourne, Sydney, Brisbane, Canberra.
- Other Australia/New Zealand businesses also considered where they are relatively location independent (e.g., SaaS businesses).
Company Size and Characteristics
- $250K-$1M EBIT with upside based upon a combination of unmet market opportunity, potential for process automation and adoption of technological enhancements.
- Capable existing team with strong sales capability & network.
- Target companies have:
- Durable demand for the product or service
- Strong local or regional market position
- Track record of consistent profitability and positive cashflow
- Committed team with aspirations for the future
We are experienced and well-connected
Nexxt has been partnering with Australian businesses for over 10 years, and we know how to make things happen.
We have deep industry knowledge, functional expertise and capital that we can bring to both our strategic investor partners and the businesses that we acquire.
If our mission strikes a chord with you and you'd like to arrange an initial chat, contact us directly at ventures@nexxt.com.au or via the Contact Us link below.
We look forward to hearing from you!
Partnership Examples
Nexxt Ventures has partnered with successful scale-ups to help them realise their potential.
VideoMyJob (Sweat Equity)
Nexxt partnered with VideoMyJob under a sweat equity model, providing product strategy and delivery services in return for an equity share in the business. As a result, VideoMyJob was able to bring an initial MVP to market much sooner than anticipated, whilst also benefiting from the adoption of an Agile approach to software development.
We Sort You (Sweat Equity)
Nexxt partnered with We Sort You under a sweat equity model to grow the business over 500% in a 3-year period. Nexxt is providing wide range of skills and expertise to the We Sort You business, including business strategy, marketing, HR, IT and Finance, as well as general advisroy services.
Get In Touch
Talk to our team of experts and unlock your potential today.
About Nexxt Group
Achieving tangible business outcomes for our satisfied clients since 2014.
Clients
Partnerships
