$40m growth capital for innovative start-ups
Australian innovators now have access to an extra $40 million in venture capital funding, with the establishment of new fund manager OneVentures.
Senator Kim Carr, Minister for Innovation, Industry, Science and Research, has congratulated OneVentures on being awarded a licence under the Australian Government’s Innovation Investment Fund (IIF) program.
The IIF program provides fund managers with $20 million which they must match with private sector capital to establish new funds to invest in promising early-stage Australian companies commercialising Australian research.
OneVentures, headquartered in Sydney, will invest in emerging Australian companies in the cleantech, new media / information technology and life sciences sectors.
"The successful raising of $20 million in private sector investor capital to be channelled into early-stage technology-based businesses is remarkable considering it is being done against the backdrop of the global financial crisis.
"It demonstrates that even in difficult times, with assistance from the Australian Government, it is possible for funds to be established that benefit our innovative companies and support high-skill, high-wage jobs."
Senator Carr said the OneVentures fund will also be structured as an Early-Stage Venture Capital Limited Partnership (ESVCLP).
An ESVCLP receives flow-through tax treatment – that is, it is not a taxing point and investors receive a full tax exemption on their share of the fund's income and capital.
Fund managers are urged to submit applications under the latest round (Tranche 3 of Round 3) of the IIF program, which closes on 31 May 2010.
"The program has generated a total commitment of over $500 million, both government and private, to commercialise Australian research. A number of world leading products and services have been developed through IIF," Senator Carr said.
For more information on the IIF and ESVCLP programs and other AusIndustry assistance measures, visit the website at www.ausindustry.gov.au, contact the AusIndustry hotline on 13 28 46 or email [email protected].
Source: Minister for Innovation, Industry, Science and Research
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