The Andrews Labor Government is kickstarting growth opportunities for local startups, with a new fund manager announced to help implement a landmark scheme which will create thousands of jobs across the state.
One of Australia's leading venture capital firms, OneVentures, has been appointed as one of the administrators to deliver the Venture Growth Fund (VGF).
Announced as part of the Victorian Budget 2020/21, the $25 million VGF will see the Government co-invest with institutional investors to provide venture loans to eligible high-growth companies - helping them scale up and increase their workforce.
A Labor Government investment of $15 million will be matched by $15 million of private capital and OneVentures, with expertise and proven success in investing in the tech sector, will manage the $30 million 1V VGF Credit Fund.
OneVentures will make investment decisions related to the 1V VGF Credit Fund from investment selection through to portfolio management and exit. The fund will focus on providing loans to high-growth tech companies ready to scale up their business.
Melbourne's startup ecosystem value has grown by more than $3 billion in the past 12 months to $10.5 billion. This follows on from a previous valuation of $2.21 billion in 2018.
Victoria has a strong track record when it comes to transforming startups into high-growth firms, with five unicorns headquartered in Melbourne collectively valued at more than US$30 billion, including Afterpay, Airwallex, Judo Bank, MYOB and PEXA.
As stated by Minister for Economic Development Tim Pallas
"We're committed to supporting high-potential startups as they look to expand - driving economic growth and creating new and exciting jobs."
"Access to this kind of capital will play a critical role in accelerating the growth of startups into medium and large companies."
As stated by Minister for Innovation, Medical Research and the Digital Economy Jaala Pulford
"This fund supports the powerhouse of founders, investors and the startup community, to create exciting opportunities and upskill the Victorian workforce."
As stated by OneVentures Managing Director and Founding Partner Dr Michelle Deaker
"We're delighted to partner with the Victorian Government on this important initiative to grow the Victorian technology ecosystem."
