Program Objectives
The objectives of the Innovation Investment Fund (IIF) are:
- To develop fund managers with experience in the early stage venture capital industry
- By addressing capital and management constraints, encourage the development of new companies which are commercialising research and development (R&D)
- To establish in the medium term a 'revolving' or self funding scheme
- To develop a self-sustaining Australian early stage, venture capital industry.
Program history
The IIF program was announced in 1997 and is currently in its third round of investment. Round one commenced in 1998 and supports five licensed fund managers. A second round (IIF2) was announced in 2000 with four licensed fund managers commencing operations in 2001. The third round (IIF3) of investment was announced in 2006 with funding commencing in 2007. Three fund managers have been licensed under the third round and it is anticipated that up to seven additional fund managers will receive licences.
The IIF venture capital funds invest in early stage companies commercialising Australian R&D. The IIF enables private sector investors to leverage off public equity capital. By demonstrating the returns achievable from investing in such companies, IIF aims to encourage additional private sector investment.
Round 3
A third round of the program (IIF3) was announced in the 2006 Budget, with $200 million made available to create ten new funds of up to $20 million each over a five year period. The Government investment is to be matched by investment from the private sector on a minimum one to one basis.
In October 2007, the $50 million Cleantech Australia Fund was licensed under the first tranche of IIF3, Fund to be licensed and in January 2008 the $40 million Brandon Biosciences Fund No. 1 was licensed.
In November 2009 the $40 million Yuuwa Capital fund was licensed under the second tranche of IIF3.
IIF licensed fund managers
Fund managers have ten-year licences and are selected against merit criteria including their experience in early stage equity investing and raising private capital. They are responsible for all investment decisions, which are made on a commercial basis in accordance with their own investment practices, subject to the IIF program guidelines.
|
Fund Manager |
Capital Commitment ($m) |
|
Round 1, 1998 |
|
Allen & Buckeridge Investment Management |
41.25 |
|
AMWIN Management |
41.25 |
|
CM Management |
41.25 |
|
Momentum Funds Management |
31.00 |
|
GBS Venture Partners |
42.50 |
|
Round 2, 2001 |
|
Start-Up Australia |
39.21 |
|
Four Hats Capital |
50.00 |
|
Neo Technology Ventures |
31.70 |
|
Stone Ridge Ventures |
35.69 |
|
Round 3, Tranche 1, 2007 |
|
|
Cleantech Australian Management Fund |
50.00 |
|
Brandon Capital Management |
40.00 |
|
Round 3, Tranche 2, 2009 |
|
|
Yuuwa Capital Fund |
40.00 |
|
Total |
483.85 |
Current program operational details
Details of both the IIF program and licensed managers can be found on the AusIndustry site.
For details on other government venture capital support programs please see the Programs and Services page.
Further information
Operational Issues
Phone: AusIndustry hotline, 13 28 46
Email
Web: www.innovation.gov.au/Section/innovation
Web: www.ausindustry.gov.au
Policy Issues
Tricia Berman
Innovation Policy Branch
Phone: +61 2 6213 7444
Email
Web: www.innovation.gov.au