Carnegie Venture Capital Pty Ltd
The Carnegie Innovation Fund No.2, LP will focus on providing capital and support to a portfolio of investments in seed, start up and early stage companies. The fund will build upon a successful track record of investing in Australian companies that drive innovation in life sciences, information technology and internet-enabled sectors, clean technology and other industries.
GBS Venture Partners Pty Ltd
The GBS BioVentures V IIF fund will be an Australian life science specialist fund. The fund will invest in companies commercialising Australian biomedical innovation to create new medicines and medical devices to treat unmet global medical needs.
Innovation Capital Associates Pty Ltd
Innovation Capital proposes a general fund which will continue its established strategy of investing in Australian technology companies with global potential. Potential portfolio companies will operate in the service and high margin manufacturing sectors. The Innovation Capital team will expand and operate from offices in Sydney, Melbourne and Adelaide.
On the 17 February 2013 the Australian Government announced, as part of the Industry Innovation Statement, a new initiative, Venture Australia to help grow new innovative Australian businesses with high growth potential and to promote Australia as a location for venture investment. The package will provide $378 million.
The Venture Australia Package is the Government’s response to the 2012 Review of Venture Capital and Entrepreneurial Skills in Australia and the 2011 Board of Taxation Arrangements under the Venture Capital Limited Partnership Regime.
The package will provide high risk capital to innovative businesses to help them start up, grow and reach their potential. It will assist in turning bright ideas into reality, create new high skilled jobs, and build enterprises that develop innovative products and services to help build the Australian economy.
Venture Australia is a $378 million package and has three main elements:
- Innovation Investment Fund;
- Taxation; and
- Promoting Innovation Success.
Information on the Venture Australia initiative is available on “A Plan for Australian Jobs” at www.aussiejobs.innovation.gov.au.
Further details on the operational program documentation will be developed over the next months on the Venture Australia initiative.
Innovation is a key driver of economic performance. Venture capital has been shown to be an effective mechanism for commercialising innovative technologies and turning research into new products, services and processes. However, commercialising innovation is very high risk.
When innovative early-stage companies have access to adequate capital and to people skilled and experienced in the commercialisation process, the chances of success are greatly enhanced.
Venture capital programs such as the Innovation Investment Fund and Early Stage Venture Capital Limited Partnerships work with private venture capital fund managers to provide capital and professional expertise to innovative companies.
The Australian Government’s venture capital programs are complemented by a range of business programs. Two significant initiatives that maintain Australia’s innovative edge and generate strong deal flow for venture funding are the generous new R&D Tax Incentive and Commercialisation Australia, a merit-based, competitive program with tailored assistance and specialist advice for proof of concept and early-stage commercialisation activities.
Such programs help establish the capabilities required for a vibrant venture capital industry in Australia and leverage off the Australian Government’s large investment in public sector research to ensure that benefits from these activities flow to the Australian community.
Eligible venture capital funds can register as an ESVCLP. Businesses with assets of less than $50 million may access venture capital under this program.
The IIF program licenses a small number of venture capital fund managers. These managers in turn invest in small Australian businesses commercialising research and development (R&D).
Businesses with total assets of less than $50 million may be able to access venture capital from funds registered under this program.
Eligible venture capital funds can register as a VCLP. Businesses with assets of less than $250 million may access venture capital under this program.