What Paloma does

Paloma is a Sydney-headquartered product innovation firm operating across three integrated divisions: Paloma Digital (a senior product agency), Paloma Ventures (a venture studio taking 15% equity stakes to build startups from scratch), and Paloma Capital (a venture fund manager, with Fund II targeting AUD$25M announced October 2024). Founded in 2016 by Nick Frandsen and Ash Fogelberg (originally as Dovetail, rebranded September 2022), the firm employs approximately 100 senior practitioners across offices in North Sydney, Auckland, Wellington, and Boulder, Colorado. Paloma serves scale-up and enterprise clients through long-term, embed-style engagements covering engineering, design, product, and AI capabilities — building products that reach 10M+ monthly active users and contributing to three unicorn outcomes including Afterpay (acquired by Square/Block for $29B).

The firm differentiates through proprietary AI-powered migration tooling (AI Code Translator, Design System Extractor, Parity Harness, Perf Bench Pack) that reduces React Native migration time by 30-50%, a deliberate "senior teams, not bloated delivery pods" staffing model, and a combined agency-plus-studio-plus-fund structure that aligns incentives across building, operating, and capital deployment. Service offerings span App Development at Scale, Platform Modernisation (React Native migrations), Design at Scale, and Paloma AI. Venture studio metrics include 87% of built-from-scratch ventures reaching $1M ARR and 90% raising over $1M at seed, with portfolio companies reaching $1M ARR in ~20 months versus industry averages.

Revenue is generated through bespoke multi-year professional services contracts (no public pricing tiers), equity stakes in venture-built companies (15% ordinary shares), and fund management fees/carry via Paloma Capital's two VC funds (Fund I deployed; Fund II raising AUD$25M). The customer base is enterprise-anchored (Afterpay, MoneyGram, Bakkt, KPMG) supplemented by a portfolio of ~10 active venture studio companies across fintech, logistics, planning tech, healthcare, and consumer verticals. Compliance posture includes GDPR, NZ Privacy Act 2020, and Australian Privacy Principles adherence.

Name

Paloma

Legal name

Paloma Digital Pty Ltd, Paloma Digital Ltd, Paloma Capital Fund 1 VCMP GP Pty Ltd and Paloma Capital Fund Manager Pty Ltd

Website

https://palomagroup.com

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

101–250 employees

Short description

Paloma is an Australasian product innovation firm operating an integrated venture studio, senior product agency, and VC fund that builds, migrates, and scales digital products for enterprise clients and from-scratch startups, with a track record of three unicorns including Afterpay.

Ownership category

akta.pro rank

Product category

Digital Product Development Services

NAICS

Computer Systems Design and Related Services (54151), Computer Systems Design Services (541512), Computer Systems Design and Related Services (5415)

SIC

Services-Computer Programming Services (7371), Services-Computer Integrated Systems Design (7373)

akta.pro primary industry

Enterprise Architecture & Technology Roadmapping (BPAEAAAC)

akta.pro secondary industries

Corporate Accelerators & Startup Programs (FSANAHAD), Accelerator / Incubator-Backed ETA Programs (FSANALAD)

Keywords

• Venture studio services
• Digital product agency
• React Native migration
• AI product development
• Venture capital fund management

Headquarters

HQ city

Darlinghurst

HQ country

Australia

HQ region

Oceania

Offices4 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Digital Product Services: Paloma Digital provides product design, development, and optimization services to enterprise and scale-up clients. Revenue is generated through project-based engagements and ongoing partnerships. Clients include Afterpay, MoneyGram, Bakkt, and KPMG.
2. Venture Studio: Paloma Ventures builds startups from scratch, taking equity (typically 15% ordinary shares) in exchange for product development, go-to-market support, and operational expertise. Ventures are launched and scaled through the studio before transitioning to independent operations.
3. Venture Capital (Paloma Capital): VC Fund I and Fund II invest capital in Paloma Ventures portfolio companies and new launches. Fund II is raising AUD$25 million targeting high-growth technology companies in Australia and New Zealand.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels5 records

Core offering

Paloma designs, builds, and optimises world-class digital products for scale-ups and enterprises, with services spanning web and mobile app development, React Native platform migrations, strategic design, and enterprise AI product development. The company operates a venture studio (Paloma Ventures) that builds startups from scratch in exchange for 15% equity and a venture capital arm (Paloma Capital) managing funds investing in early-stage technology companies in Australia and New Zealand.

Product overview

Paloma is a multi-partner product innovation company operating across three divisions: Paloma Digital (product development services), Paloma Ventures (venture studio), and Paloma Capital (investment fund). The company builds digital products used by millions of people monthly, acting as a product innovation partner for scale-ups and enterprises. Paloma Digital's core service offerings include App Development at Scale (mobile/web development), Platform Modernisation (React Native migration services using proprietary AI tools), Design at Scale (strategic design and research), and Paloma AI (enterprise AI product development). The company has helped build three unicorn companies including Afterpay (acquired for $29B), MoneyGram, and Bakkt. The venture studio (Paloma Ventures) takes 15% equity to build ventures from scratch alongside founders, while Paloma Capital manages investment funds targeting high-growth technology companies. The product portfolio consists primarily of client products where Paloma served as development partner, including fintech platforms (Afterpay, MoneyGram, Bakkt, ClearSpend, Sucasa), logistics automation (Gondola), planning technology (Planna), sustainability tools (Grounded), health services (NutriPATH), and dating applications (HUD, After).

Differentiator

Problem solved

Functional benefit

Brands

• Paloma Digital: Digital product agency division partnering with ambitious companies to design, build and optimise products used by millions of people every month.
• Paloma Ventures
• Paloma Capital

Products and services

• App Development at Scale Full-stack mobile and web application development service for enterprises and scale-ups, covering engineering, product, and cloud expertise to support growth at speed. Capabilities span from prototype to millions of users.
• Platform Modernisation Migration service consolidating apps from native iOS, Android, and Web development into a unified React Native codebase using proprietary AI-powered migration tools (AI Code Translator, Design System Extractor, Parity Harness, Perf Bench Pack) that reduce migration time by 30-50%.
• Design at Scale Strategic design and research service applying design thinking to reduce risk, increase return, and focus investment where it matters most. Includes UX/UI design, design systems, brand experience transformation, and conversion optimisation.
• Paloma AI Enterprise AI product development service building real AI products with commercial outcomes, not just POCs. Specialises in identifying high-value workflows for automation and redesigning surrounding processes.
• Paloma Ventures (Venture Studio) Venture studio that builds startups from scratch, taking 15% ordinary shares in exchange for product development, go-to-market support, and operational expertise. Ventures are launched and scaled through the studio before transitioning to independent operations. Assesses approximately 500 venture ideas per year and forms approximately 5 partnerships.
• Paloma Capital (Venture Capital Fund Management) Venture capital fund management via Paloma Capital Fund 1 VCMP GP Pty Ltd and Paloma Capital Fund Manager Pty Ltd, operating as Corporate Authorised Representatives of Boutique Capital Pty Ltd (AFSL 508011). Fund II targets AUD$25 million for 14-18 companies over three years in Pre-Seed, Seed, and Series A startups in Australia and New Zealand.

Quantifiable outcome

• Reduced React Native migration time by 30-50% vs traditional methods
• +5 more outcomes

Named customers11 records

Segments3 records

Ideal customer profiles1 record

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

AI capability6 records

Feature4 records

Scale indicators12 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Idealab: Idealab is a Pasadena-based technology incubator and venture studio that creates and operates internet and software companies from concept through commercialization. Long-running direct peer to Paloma's venture studio model with similar founder-economics and multi-vertical scope.
• Science Inc. Science is a Los Angeles-based startup studio and venture firm that builds, launches, and operates new consumer and enterprise software companies alongside founders. Comparable to Paloma Ventures in thesis, founder-economics, and multi-vertical approach.
• Betaworks: Betaworks is a New York-based venture studio that builds and invests in internet and AI startups with operating support, making it a direct analogue to Paloma's combined studio + services + fund model. Both firms take equity, provide hands-on product and engineering resources, and target early-stage founders.
• Frog Design (Capgemini Invent): Frog is a global design and innovation consultancy that works with enterprises on product design, brand, and digital transformation. Comparable to Paloma's 'Design at Scale' offering and broader product innovation partnership positioning.
• Atomic Group (formerly Atomic.VC): Atomic is an Australasian venture studio that partners with founders to co-build tech companies from scratch, taking equity and providing product, engineering, and GTM support. Closest regional peer to Paloma Ventures in thesis, geography, and studio economics.

Broad incumbents

• Thoughtworks: Thoughtworks is a global technology consultancy that designs, builds, and runs digital products for enterprises and scale-ups using modern engineering practices. Comparable to Paloma Digital's enterprise digital product development and platform modernization services at a much larger scale.
• Slalom: Slalom is a global consulting firm focused on technology and business transformation, including digital product development and platform modernization work for enterprise clients. Overlaps with Paloma Digital's enterprise transformation engagements.
• Rocket Internet: Rocket Internet is a large-scale global venture builder and internet platform investor with operations across emerging markets. While much larger and geographically broader, it shares the same venture studio DNA of building/operating startups with operational support and equity stakes.
• Accenture Song / Accenture Interactive: Accenture's digital experience and product engineering practice delivers large-scale digital product design, development, and modernization for global enterprises. Competes with Paloma Digital for enterprise digital transformation and platform modernization mandates.

Regional players

• Blackbird Ventures: Blackbird is a leading Australian/NZ venture capital firm investing in early-stage technology companies. Overlaps with Paloma Capital's GP/fund mandate within ANZ, though Blackbird primarily provides capital rather than operating support.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/PalomaGroup
• LinkedInlinkedin.com/company/palomagroup
• Instagraminstagram.com/itspalomagroup
• Facebookfacebook.com/itspalomagroup

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles13 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Paloma