While the venture capital landscape has been swept up in a gold rush of generative AI, large language models, and automated agents, a quieter, more foundational truth remains: software remains the bedrock of the modern digital economy. Recognizing that the "gold-toothed rat" of AI-centric trends often distracts from the rigorous realities of building a sustainable, scalable business, Australian venture capital firm EVP has launched a strategic initiative aimed at bringing founders back to basics.
The firm has officially unveiled the 40x program, a curated accelerator-style initiative designed specifically for early-stage software founders who are moving beyond the "idea phase" and into the trenches of revenue generation, customer acquisition, and Series A preparation.
The Core Mandate: Focusing on the "40x" Goal
The 40x program is not an incubator for basement-level prototypes; it is a finishing school for high-potential startups. By targeting founders who are already generating revenue and scaling their operations, EVP is positioning itself as a partner for those who are "fundraising-ready" or targeting a capital raise within the next 12 months.
The program’s name, "40x," reflects the ambitious growth trajectory expected of modern software-as-a-service (SaaS) businesses. It is an acknowledgment that in the current economic climate, investors are no longer looking for "growth at any cost." Instead, they are prioritizing founders who understand unit economics, customer lifetime value (LTV), and churn mitigation—metrics that define the difference between a failing startup and a unicorn-in-waiting.
Chronology: The Evolution of EVP’s Founder Support
The launch of 40x follows a decade of market shifts that have fundamentally altered how software companies reach maturity.
- 2013–2018 (The Era of Cheap Capital): During this period, the focus was on rapid user acquisition. Founders were encouraged to spend aggressively on marketing to capture market share, often at the expense of profitability.
- 2020–2022 (The Pandemic Pivot): Digital transformation accelerated, and software demand spiked. Many startups scaled too quickly, leading to the "correction" seen in 2023.
- 2023 (The AI Gold Rush): The market became saturated with "wrapper" startups—companies built solely on top of OpenAI’s APIs without a distinct proprietary advantage or "moat."
- 2024 (The Return to Fundamentals): EVP identified a gap in the market. While there were plenty of programs for early-stage ideation, there was a lack of structured, high-level support for founders in the "messy middle"—those earning revenue but struggling to reach the scale required for a successful institutional capital raise.
With this context, the development of the 40x program was finalized over several months, focusing on a curriculum that emphasizes operational excellence over hype-driven narrative.
Supporting Data: Why "Software Matters" More Than Ever
Despite the media obsession with AI, data from the broader technology sector suggests that traditional SaaS remains a primary driver of enterprise value.
According to recent industry reports, while AI startups are receiving significant press, the most resilient companies in the current portfolio of major VC firms are those that solve complex, domain-specific problems using traditional software architecture. These companies benefit from:
- High Switching Costs: Unlike a generative AI chatbot that can be replaced by a competitor’s update, vertical SaaS platforms that integrate into a company’s workflow are rarely discarded.
- Predictable Revenue Streams: The subscription economy continues to offer the most attractive risk-adjusted returns for institutional investors.
- Capital Efficiency: Mature software businesses often require less capital to reach profitability than hardware or deep-tech AI companies, making them more attractive in a high-interest-rate environment.
The 40x program aims to equip its 40 participants with the specific "playbooks" needed to navigate these metrics, ensuring they can demonstrate to future investors that their growth is not just a bubble, but a sustainable trajectory.
Leadership and Program Structure: The "Z" Factor
At the helm of the 40x program is Mark "Z" Zmarzly. An investor, founder, and prominent figure in the Australian startup scene, Zmarzly brings a unique, hands-on perspective to the role. Known as a basketball enthusiast who draws parallels between the discipline of sports and the intensity of the startup world, Zmarzly is tasked with leading the charge in vetting and mentoring the selected founders.
The In-Person Experience
The program eschews the digital-first trend of the last few years in favor of three intensive, in-person days. This decision was intentional. EVP argues that the nuances of fundraising and scaling are best communicated through direct mentorship and peer-to-peer networking.
- Day 1: The Narrative. How to refine the pitch, articulate a vision, and align with investor expectations.
- Day 2: The Metrics. A deep dive into financial modeling, LTV-to-CAC ratios, and growth forecasting.
- Day 3: The Ecosystem. Networking sessions that connect founders with active investors, seasoned founders who have successfully exited, and potential strategic partners.
Official Responses and Strategic Implications
In a recent statement, the EVP team underscored that while AI is a "gold-toothed rat"—a flashy, attention-grabbing trend—it is only a tool, not a business model.
"Software still matters," the firm reiterated. "The problems that businesses face in accounting, human resources, supply chain management, and cybersecurity haven’t disappeared. If anything, they have become more complex. Our goal with 40x is to ensure that the founders who are actually solving these problems have the support, the network, and the strategic foresight to scale effectively."
The Implications for the Australian Tech Ecosystem
The launch of 40x signals a maturation of the Australian venture capital landscape. By creating a program that bridges the gap between early-stage experimentation and late-stage institutional capital, EVP is essentially building a "pipeline" of higher-quality startups.
For the broader market, the implications are clear:
- Increased Rigor: Founders participating in 40x will be expected to present cleaner cap tables and more robust unit economics.
- Investor Confidence: A program backed by a firm like EVP provides a "seal of approval" that can make future Series A and B rounds significantly easier for participating founders.
- Community Building: By bringing 40 of the most promising founders together, the program creates a cohort of peers who can support one another long after the three-day workshop concludes.
Conclusion: The Path Forward for Modern Founders
As the dust settles on the initial AI frenzy, the founders who will succeed are not necessarily those with the most "AI-integrated" products, but those with the best-run software businesses. The 40x program provides a blueprint for this success.
It serves as a reminder that venture capital is not just about writing checks—it is about the transfer of expertise. By focusing on the fundamentals of scaling, revenue growth, and capital readiness, EVP is helping to ensure that the next generation of Australian startups are built on rock, not sand.
For those founders currently in the "messy middle," the invitation to 40x is more than just a networking opportunity; it is a chance to sharpen their edge in an increasingly competitive global market. In an age of digital noise, the ability to execute on the basics remains the most disruptive advantage a company can have.
Applications for the inaugural cohort are currently being accepted via the 40x website, offering a gateway for those ready to move from the startup phase to the growth phase. The message is loud and clear: if you are building software, the time to optimize, scale, and prove your model is now.
