The ACT Government is currently conducting a procurement process to appoint a fund manager to establish and manage the ACT Venture Capital Fund.
The application period is closed.
The ACT Government is working with those that applied to finalise the procurement.
The ACT Venture Capital Fund will launch in 2024.
The ACT Government is a cornerstone investor and a full commercial partner in the fund. We will provide $10 million in capital. The successful fund manager will raise, at a minimum, an additional $10 million in capital from private investors.
The fund will be a unique opportunity to invest in Canberra-based start-ups, whether they are pre-seed, seed or Series A. The fund will be sector-agnostic and will support responsible investment.
Role of the fund manager
The fund manager will:
- establish, operate and manage the fund
- register with the required regulators
- develop an investment strategy to support the Investment Mandate
- deliver a net positive financial return to the ACT Government over the life of the fund
- engage with the Canberra start-up community
- deliver non-financial support to investee companies.
The fund manager also needs to raise a minimum of $10 million in capital from private investors. This can include investors like:
- superannuation funds
- high net-worth individuals
- family offices
- other institutional investors.
Investors must be wholesale clients under the Corporations Act 2001 (Cth).
The fund manager must be appropriately authorised to provide the financial services with respect to the fund.
ACT Government’s role in the fund
The ACT Government is a cornerstone investor and a full commercial partner in the fund. The ACT Government will not be involved in the investment decision making process.
The ACT Government will:
- develop the Investment Plan and Responsible Investment Policy
- get the ACT Treasurer’s approval of the Investment Plan and Responsible Investment Policy
- collaborate with the fund manager to develop the Fund Mandate
- be represented on an advisory body that governs the fund’s adherence to its Fund Mandate.
Why Canberra is a great investment
Canberra is brimming with ideas ready to be realised.
The ACT was the most patent-intensive state or territory in 2022, with 2.8 applications for every 1,000 businesses in the territory.
Between July 2019 and June 2023, the number of businesses in the ACT grew by 21.2 per cent, the highest percentage growth of all jurisdictions and higher than the national average of 14.1 per cent.
Our unique innovation ecosystem supports growth, particularly within our advanced technology, defence, space and cyber sectors. For example, Canberra provides Australia’s only end-to-end facilities to design, manufacture and test spacecraft. Canberra is a place where innovative solutions can start, grow and thrive.
Startup Genome’s Global Startup Ecosystem Report 2023 found that from 1 July 2020 to 31 December 2022, Canberra generated a start-up ecosystem value of $716 million, a significant 815% increase compared to the preceding period.
This is because Canberra creates the ideal conditions for innovation with our proximity to:
- top-ranked universities
- research institutions
- supportive business ecosystem.
Companies, universities and the government invest heavily in research and development in our city. The Australian Government spends 17% of its research and development budget in Canberra.
In 2014, the ACT Government established the Canberra Innovation Network (CBRIN).
CBRIN is supported by five leading higher education and research institutions. It hosts more than 200 business innovation events each year. It plays a vital role in the start-up culture of Canberra.
The ACT also has a highly educated workforce. We value knowledge, and there’s ready access to research collaborations and business networks.
Some of Canberra’s successful start-ups include:
- Seeing Machines who have developed the world’s most efficient and optimised technology for driver monitoring. They’re industry leaders in artificial intelligence and are delivering to automakers globally.
- Skykraft who recently launched the largest ever Australian-made payload into space. They’ve created a space-based global air traffic management system, and will launch over 200 satellites into space over the next two years All of which are designed, developed and assembled in Canberra.
- Instaclustr who provide global cloud solutions. With advanced security, scalability and reliability for the most popular open-source technologies. Incubated at the Australian National University, Instaclustr was recently acquired by one of the US’s largest software companies.
Invest in Canberra and you will be investing in some of Australia and the world’s most daring new ideas and technologies.