The Victorian Budget has committed a total of $186.2 million to the continued growth of Victoria’s start-up ecosystem. As part of the measure, $40 million will be distributed over the next four years to Victorian start-up agency LaunchVic to continue in its role helping the state’s start-up ecosystem.
A further $60.5 million has been allocated to the Victorian Startup Capital Fund, leveraging up to $180 million in private sector investment, to inject much needed early-stage funding into start-ups to help them become the scale-ups and unicorns of the future.
A further $10 million has been allocated to a Women Founders Angel Sidecar Fund, that will unlock a further $30 million in private sector equity to increase the number of women founders.
“Start-ups are proven job multipliers. For every high skilled job they create, a further five jobs are created in associated service sectors in the broader economy,” LaunchVic chair Leigh Jasper said. “I would like to thank the Victorian Government for their vision and recognition of a sector that will accelerate the economic recovery of the State. In particular, the [Victorian Startup Capital Fund] will be a game-changer, providing much-needed capital to Victoria’s best early-stage companies to support them to grow and create jobs.”
The state government’s funding comes on top of the $25.7 million Venture Debt Scheme – the Venture Growth Fund run by Invest Victoria that will inject late-stage capital into the ecosystem.
In addition, the Victorian Government has announced an R&D Cash Flow Loans initiative that will provide up to $50 million in low-interest loans to innovative businesses, including start-ups that undertake research in the state.
LaunchVic’s CEO Dr Kate Cornick thanked the Victorian Government for its significant investment in the sector, saying, “Work is now underway to progress a detailed Business and Implementation Plan for the Victorian Startup Capital Fund, Women’s Angel Sidecar Fund and LaunchVic more broadly.”
