WA attempts to lift venture capital record with $30 million co-investment program

The Western Australian government is attempting to improve its venture capital ecosystem, currently ranked second-last among all Australian jurisdictions, through a $30 million initiative intended to lure global VC funds to invest in the state.

According to a description on the state government’s website, the Western Australian Venture Capital (WAVC) Initiative is open to firms wanting to invest in startups and scaleups in targeted sectors.

It aims to increase the availability of early-stage VC investment by a “Fund of Funds” model, with the government co-investing with the private sector in venture capital firms “to leverage funding for WA-based start-ups.” 

Among conditions are that a firm “must confirm its commitment to raising at least $2 of private sector investment for every $1 of Government commitment” and to “deploy at least 1.25x the WA Government’s commitment in WA Companies”. (Other criteria can be viewed here.)

According to a statement from premier Roger Cook, the state’s VC sector is worth only 2.1 per cent of the national share and currently ranked second-last.

“Start-ups are proven job creators, capable of adding thousands of new jobs to our economy – we just need to create the environment in which they can thrive,” said Cook.

“Our WA Venture Capital Initiative will supercharge the State’s innovation ecosystem, helping us to attract and retain high-performing start-ups here in WA.”

A request for proposals opened last month, and closes September 27.

The priority industry sectors are listed as:

• Energy
• Tourism, events and creative industries
• International education
• Defence industries
• Mining and METS
• Space industries
• Health and medical life sciences
• Primary industries

Picture: credit WA government