What is the Innovation Investment Fund?
The Australian Government’s IIF is a venture capital program that supports 10 year innovation funds to develop high growth Australian companies to become globally competitive by commercialising the outcomes of Australia’s strong research capability. The Australian Government has supported venture capital through its IIF program since 1998. Over the three rounds the program has licensed 16 fund managers and has supported more than 100 new companies.
For Rounds 1 and 2 the Australian Government licensed nine managers and invested $221 million, matched with total funding of $354 million.
Seven fund managers have been licensed under IIF Round 3 with committed capital of $290 million (government and private capital) for early stage ventures in Australia.
For IIF Round 3 Tranche 4 the Australian Government will commit up to A$100 million to be matched at least 1:1 with private sector capital.
A 2010 evaluation found that the IIF program contributes both to the commercial development of targeted firms and to the early stage venture capital market in general. The IIF program has been critical in channelling additional equity capital to genuinely early stage and high risk young businesses primarily in new technology sectors.
What are the objectives of the fund?
The Innovation Investment Fund Round 3 objectives are to:
- develop fund managers with experience in the early stage venture capital industry
- by addressing capital constraints and management constraints, encourage the development of new companies that are commercialising research and development
- establish, in the medium term, a ‘revolving’ or self-funding scheme
- develop a self-sustaining, early stage venture capital industry in Australia.
Announcement of successful applicants under Round 3 Tranche 4
The Minister for Industry and Innovation will announce the successful applicants in March 2013.
Successful applicants invited to submit an offer to establish an innovation fund will only have six months from notification of success to agree on the fund’s governing documents and confirm their matching private capital.
Companies seeking finance from an IIF
IIF fund managers make all investment decisions.
To be eligible for investment under the IIF program a potential investee company must meet eligibility criteria. The IIF Program Guidelines define an eligible and ineligible investee company.
Note, the IIF does not invest directly in ventures, potential investee companies seeking access to venture finance should contact managers directly. Please refer to the Seeking Finance page.
AusIndustry contact
Graydon Smith
Manager, Venture Capital Funds
Ph: +61 2 6213 6209
Email: IIF3@innovation.gov.au
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