Victoria’s startup agency, LaunchVic, is hoping to lure more venture capital to south, offering VC funds up to $300,000 in backing if they put up their shingle in the state.
Eligible funds can either new or “new to Victoria,” under the incentive program, providing existing fund managers with operations elsewhere to set up local offices in Victoria, and commit to raising a minimum of $10 million.
LaunchVic CEO Dr Kate Cornick said the financial support can be allocated for various purposes, including covering establishment costs such as legal fees and company registration, supporting new staff salaries, and to facilitate capital raising.
The focus is to get more capital to address ‘valley of death’ concerns when it comes to early-stage investment.
Dr Cornick said that while there had been substantial growth in late-stage venture investments beyond Series B, they’d seen stagnation in early-stage VC funding, encompassing pre-seed, seed, and Series A stages.
“Just 2% of total venture funding was invested into pre-seed and seed stage companies in the first half of 2022,” she said.
“We intend for this program to invigorate the local VC sector, foster its growth, and ultimately place more capital into the hands of founders during those crucial early stages.”
As part of the VC Support Program, LaunchVic is also accepting applications for International Intern Grants of up to $20,000 to enable emerging fund managers working within Victorian early-stage VC funds to pursue internships at global VC organisations.
This initiative aims to further develop their fund management skills, expand their professional networks, and facilitate connections between local and global VC funds. Applications that demonstrate cash co-contributions to support internship-related travel will be favourably considered.
For details and to apply, visit launchvic.org/grants
LaunchVic has been active in supporting VCs with early stage funding, including recently the launched agtech sidecar fund, the Hugh Victor McKay Fund, as well as the Alice Anderson Fund for female-led startups.