The creation of the Biomedical Translational Fund was announced in the Prime Minister’s National Innovation and Science Agenda on 7 December 2015.
The independent body will be funded by the Federal Government with $250 million dollars to invest in biomedical discoveries, assist in their commercialisation and strengthen industry collaboration with the research sector. It is proposed that the government funding be matched by an additional $250 million from private investors, creating a $500 million capital pool available for commercialisation of biotech and medtech projects. Through attracting private sector investment during the initial stages of commercialisation, the Government seeks bridge the gap between research potential and entrepreneurial potential and to assist biomedical research in progressing from early to late stage research, a critical juncture that is also known as the ‘valley of death’ due to the difficulty of maintaining adequate funding over the lengthy period of trials and approvals involved before a return on investment can be realised.
Eligible projects will be already past proof-of-concept phase, external fund managers will be selected via a competitive process and all investment decisions will be made by private biotech and medtech fund managers. Average project investment is expected to be in range of $5 million to $20 million.
The new independent body for the Biomedical Translation Fund will be established in 2016 and investments in biomedical business will commence once the new body is established.
Our Health Tech and Venture Capital Team will keep you updated on the Biomedical Translational Fund, and, in particular, the process for approval of private fund managers with matching funds, the investment decision making process, and the eligibility criteria for qualifying entities and projects.