In welcome news for emerging and innovative Queensland businesses, the State Government has shown its support to this sector by providing $40 million in the Budget for early stage venture capital over the next four years.
The Queensland Government has squarely focussed its attention on Queensland start-ups, innovative businesses and science and research bases with its $180 million Advance Queensland package. Advance Queensland incorporates a range of initiatives, including the Fund, aimed at attracting and developing the best and brightest talent, commercialising ideas and supporting a startup ecosystem in Queensland.
The Fund will provide $40 million over the next four years ($10 million per year) as startup capital on a matching basis with private sector co-investors.
The Fund will be administered by QIC and a panel of independent experienced investors will consider investment proposals brought to the panel by co-investors.
The Fund will have a number of investment criteria including:
- having at least matching private sector co-investment funding;
- the majority of assets and employees being located in Queensland;
- having an innovative idea, product or service or commercialising research; and
- creating opportunities for new high value and skilled employment.
The Queensland Government is currently working on the design and delivery of the Fund and it is expected that applications for funding will open in late 2015. HopgoodGanim Lawyers will keep you up to date as further information is made available.
The Fund presents an exciting opportunity for innovative Queensland businesses to access government funding to match private sector funding. It is hoped that this will increase the level of angel and venture capital investment in Queensland businesses.