Combet announces $200 million funding for Aussie start-ups

 

At least $200 million will be invested into early stage, high growth Australian companies by three new venture capital funds supported by the federal government’s Innovation Investment Fund (IIF).

The Minister for Climate Change, Industry and Innovation, Greg Combet, has announced three new funds selected under the latest tranche of the IIF, a key Government vehicle for providing small and medium sized enterprises with access to venture capital.

He said $100 million of Government funding would be matched dollar for dollar by private sector investors in Carnegie Venture Capital Pty Ltd ($40 million), and GBS Venture Partners Pty Ltd and Innovation Capital Associates Pty Ltd ($30 million each).

 “These funds will invest at least $200 million of new capital in start-up businesses,” Combet said.

 “These new fund managers will provide crucial equity capital and essential management expertise to a whole range of promising companies across the economy.

“Venture capital helps turn ideas into successful businesses and new jobs. It is a vital part of our innovation system which is why the Government, as part of its Plan for Australian Jobs, has announced a new $350 million round of the IIF Program.”

The federal government sees the IFF and success of start-ups in the technology sector as essential for jobs growth. It plans to continue the scheme in partnership with private investors.

Part of a broader strategy which includes the creation of Industry Innovation Precincts and tax changes, the IIF commenced in 1998. Over three rounds, the IIF has established 16 funds and has co-invested in new companies including Seek, Bionomics, Pharmaxis and Benthic Geotech.