The State Government of Victoria is backing standout companies that will invest in Victorian jobs and innovation and boost the state’s future economy.
Startups are proven job creators, and the State Government launched a $20 million Equity Investment Attraction Fund that will co-invest with lead institutional investors and take non-controlling minority stakes in companies.
The Fund will be guided by an Advisory Board comprising independent investors Brigitte Smith, managing director of GBS Ventures, Rachel Yang, partner at impact venture capital fund Giant Leap, and Kerri Lee Sinclair, an experienced investor with over $100m of capital under management.
Their wealth of experience will provide insights on potential investment opportunities and advise guidance on the implementation of the fund and achievement of its objectives.
The fund will focus predominately on attracting the best and brightest international startups from innovative countries like Singapore, Israel, the United Kingdom, the United States and India to bolster Victoria’s thriving startup ecosystem.
Danni Jarrett, CEO of Invest Victoria said, “Our thriving tech ecosystem and sound business environment is key to transforming startups to scale-up and expand their business offerings.”
Startups are driving significant jobs growth in Victoria with a 10.7 per cent rise in employment year on year between 2018 and 2020. Melbourne’s early-stage startup ecosystem value has more than doubled in a year – up 126 per cent from $10.5 billion to be worth $23.6 billion.
Kerri Lee Sinclair, Equity Investment Attraction Fund Advisory Board Chair said “It’s a great opportunity to be a part of this Advisory Board. Our roles as investment professionals allow us to collaborate with Government, evaluate investment opportunities and deliver key fund mandates”.
The fund will prioritise equity investments that attract early-stage startups to Victoria, looking to invest between $1 million and $5 million per investment, which is expected to result in approximately five to 10 high-quality investments.
The fund will invest in unlisted companies that are willing to locate or invest large and critical parts of their operations in Victoria, have a strong lead investor and possess novel products and services with high commercial potential.
In addition to these criteria, the Fund will prioritise investment proposals that create broader contributions to the economy, such as supporting the development of new industries, increasing employment opportunities within Victoria, boosting productivity, and increasing long term economic growth.
The fund is part of a suite of initiatives designed to foster innovation, including the $2 billion Breakthrough Victoria Fund, the $60m Victorian Startup Capital Fund and the $10m Alice Anderson Fund.
More information on the Equity Fund can be found at https://www.invest.vic.gov.au/how-we-can-help/incentives-grants-and-programs/equity-investment-attraction-fund