$100 million allocated for new tranche of investment fund

As part of the federal government’s recently announced industry and innovation plan ‘A Plan for Australian Jobs’, in which it announced a new $350 million round of the Innovation Investment Fund (IIF), $100 million has now been allocated.

The IIF Program’s $100 million of funding is to be matched dollar for dollar by private sector investors in Carnegie Venture Capital ($40 million), and GBS Venture Partners and Innovation Capital Associates ($30 million each), providing for at least $200 million to be invested into early-stage, high-growth Australian companies.

The Minister for Climate Change, Industry and Innovation, Greg Combet, announced three new funds selected under the latest tranche of the IIF recently and said: “This is a huge boost for Australian start-ups. These funds will invest at least $200 million of new capital in start-up businesses … [and] fund managers will provide crucial equity capital and essential management expertise to a whole range of promising companies across the economy.

The IIF commenced in 1998 and over three rounds has established 16 funds and has co-invested in new companies including Bionomics and Pharmaxis. Examples of successful fund managers and IIF investee companies are available at www.ausindustry.gov.au.

More information on the IIF program can be accessed through the AusIndustry hotline on 13 28 46 or by emailing VentureCapital@innovation.gov.au.