The announcement of a $30 million fund to accelerate venture capital investment in Western Australia will help to supercharge innovation and further diversify the state’s economy.
The WA Venture Capital (VC) Initiative was announced by Premier Roger Cook at CCIWA’s Business Breakfast event this morning and will deliver a much-needed boost to WA’s VC capabilities.
The Initiative will focus on eight key areas, matched to WA’s unique strengths, including energy, tourism, education, defence, mining, space industries, health sciences and agriculture.
It will use a “funds for funds” model, where qualified VC firms will be given capital to leverage funding for WA-based start-ups.
CCIWA Chief Executive, Chris Rodwell, said the initiative would fast-track home grown innovation in WA.
“WA has world-leading skills in automation, technology and clean energy thanks to a decades-long mining boom, but we need private investment to incubate the next big ideas,” he said.
“We’ve seen overseas that when Government is willing to back entrepreneurs and innovators, it gives private investors the confidence to follow suit.
“The WA VC Initiative sends a clear signal that the Government is serious about diversifying the state’s economy.”
Currently, WA only receives around 2% of Venture Capital funding in Australia.
By comparison, South Australia receives around 3% of national Venture Capital investment and Queensland around 8%. The vast bulk of funding goes to New South Wales and Victoria.
“The skills and ideas are there and when the right conditions are in place, West Australian entrepreneurs and businesses can compete on a global scale,” Mr Rodwell said.
“By backing in local innovators, this initiative will help to deepen the pool of private investors prepared to support start-ups in WA.”
More information on the WA Venture Capital Initiative is available here.
