The Gillard government has set aside $200 million in a move to boost funding to Australian start-ups.
The fund will be invested into early stage, high growth Australian companies by three new venture capital funds, supported by the Gillard government’s Innovation Investment Fund (IIF).
The IIF, created in 1998, is a key government vehicle for providing SMBs with access to venture capital.
Minister for climate change, industry and innovation, Greg Combet, has named three new funds selected under the latest transaction of the IIF.
According to Combet, $100 million in government funding would be matched dollar for dollar by private sector investors in Carnegie Venture Capital ($40 million), GBS Venture Partners ($30 million), and Innovation Capital Associates ($30 million).
“This is a huge boost for Australian start-ups. These new fund managers will provide crucial equity capital and essential management expertise to a whole range of promising companies across the economy,” he said.
The Government, as part of its Plan for Australian Jobs package, has also announced a new $350 million round of the IIF program.
Combet claimed the venture capital helps in turning ideas into successful businesses and new jobs.
“It is a vital part of our innovation system. The IIF continues to commercialise leading Australian research to produce new technologies, products and services that will be sold around the globe.
“Successful start-ups are essential to creating new products, jobs and economic growth. The IIF will continue to co-invest government capital with private investor capital into early-stage Australian technology based companies,” Combet said.
Thus far, the IIF has established 16 funds over three rounds and co-invested in new companies including Seek, Bionomics, Pharmaxis and Benthic Geotech.
It funded $100 million in the most recent investment round.