Seven venture capital firms will look to invest up to $150 million in Western Australian startups underpinned by a $45 million commitment from the state government’s WA Venture Capital initiative (WAVC).
Premier Roger Cook announced an additional $15 million for WAVC at West Tech Fest in Perth, topping up the government’s initial $30m commitment.
Cook said the firms from outside WA show how the WAVC can attract co-investments from large national and international VC funds.
“High-growth startups are proven job creators, capable of adding thousands of new positions at a faster rate than other sectors,” he said.
“Growing the number of VC firms in our state also means local startups don’t have to move east to secure investment, retaining talent here in WA. I have no doubt that the seven successful recipients of this increased funding will bring new skillsets and perspectives to our VC ecosystem.”
Digital economy and medical research minister Stephen Dawson said the WA Venture Capital initiative uses a ‘Fund of Funds’ model, which allows the WA government to have its funding matched and surpassed for each recipient.
“The support the WAVC brings to local startups and scaleups will help them thrive in competitive markets,” he said.
“Investing in our Western Australian innovation ecosystem is setting up our state for the future, diversifying our economy and creating quality local jobs.”
The partnership will see the seven VCs, including four based in the state, invest a total of $150 million in Western Australian startups. The WAVC, which is jointly run with the Dept of Health, will also provide support for the other East Coast VCs, Skalata, Artesian and Melt, to expand their presence locally.
Skalata cofounder and CEO Rohan Workman said the next few years will be transformative for WA’s startup ecosystem.
“What we’re seeing in WA isn’t just momentum – it’s a genuine inflection point,” he said.
“The quality of founders, the research commercialisation opportunities, the scale of investment – these aren’t just positive signals, they’re markers of an ecosystem ready to take off.”
For Perth-based Purpose Ventures, which backed two local startups in the past week – a $4 million round for telehealth psychology platform My Mirror and $2 million for venue booking platform SpacetoCo – the WA government investment closes out the fund Derek and Kylie Gerrard launched in April 2023 to address chronic underfunding for WA-based startups with $55 million in the kitty.
“We are grateful we are being trusted by the WA State Government with their investment into the Purpose Ventures Fund,” Derek said.
“This will see us close our fund at $55m and we are looking forward to backing more amazing startups, diversifying the WA economy and growing the wealth in our state.”
The seven VC funds are:
- Purpose Ventures: a new WA-based sector agnostic fund that launched in 2023.
- FundWA: a VC dedicated to WA ventures and diversifying the local economy;
- Brandon Capital Partners: a life science VC in Australasia with a presence in WA;
- Health Translation Group: a WA-based fund founded by three local medical research institutes: Harry Perkins Institute of Medical Research, Lions Eye Institute and the Perron Institute;
- Artesian Venture Partners: one of the largest VCs in Australia, which has an early-stage platform in agrifood, energy, health and medical technology, defence and space;
- Melt Ventures: a fund with targeted investments in clean tech, IOT and advanced manufacturing;
- Skalata Ventures: a Melbourne-based early-stage fund focused on diversifying economies.
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