The Andrews Labor Government has launched a $20 million Equity Investment Attraction Fund to attract high-potential global startups to invest in Victorian jobs and innovation, supporting the state's thriving startup ecosystem. The fund will co-invest with leading institutional investors and take non-controlling minority stakes in companies, focusing on attracting early-stage startups from countries such as Singapore, Israel, the UK and the US.
The fund will invest between $1 million and $5 million in each venture, which is expected to result in five to 10 high-quality investments. Companies must be willing to locate or invest significant and critical parts of their operations in Victoria, have a strong lead investor and have novel products and services with high commercial potential.
The Equity Investment Attraction Fund is part of a $65 million package in 2022/23 Victorian Budget to attract innovative global companies to the state and help established Victorian businesses expand. It is guided by an advisory board comprising independent investors Brigitte Smith, Managing Director of GBS Ventures, Rachel Yang, Partner at impact venture capital fund Giant Leap, and Kerri Lee Sinclair, an experienced investor with more than $100 million under management.
The value of Victoria's startup ecosystem has more than doubled in the last year, increasing by 125% from $10.5 billion to $23.6 billion. Startups are driving significant employment growth in Victoria, with a 10.7% year-on-year increase in employment between 2018 and 2020. To prioritise investment proposals that make a broader contribution to the economy, the Labor Government will also support the development of new industries, increase employment opportunities in Victoria, boost productivity and increase long-term economic growth.
The Equity Investment Attraction Fund joins the $2 billion Breakthrough Victoria Fund, the $60 million Victorian Startup Capital Fund and the $10 million Alice Anderson Fund as part of Victoria's initiatives to drive innovation and job growth. For more information on the Equity Investment Attraction Fund, visit invest.vic.gov.au.