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 of the IIF program (IIF3) was announced in 2006 and has the capacity to license up to 10 fund managers. As of July 2010, four fund managers have been licensed.
The IIF venture capital funds invest in early stage companies commercialising Australian R&D and 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 in early stage venture capital.
Round 3
A third round of the program (IIF3) was announced in the 2006 Budget, with $200 million made available to create up to ten new funds with the Government providing up to $20 million to each fund, to be matched by investment from the private sector on a minimum one to one basis.
Tranche 1 of IIF3 licensed two funds, the $50 million Cleantech Australia Fund (September 2007) and the $40 million Brandon Biosciences Fund No. 1 (January 2008).
Tranche 2 of IIF3 licensed two $40 million funds, Yuuwa Capital Fund (November 2009) and OneVentures Innovation Fund (February 2010).
Applications for the third tranche of IIF3 closed on 31 May 2010. Fifteen applications are currently being assessed and it is anticipated that successfull applications will be announced in September 2010.
IIF licensed fund managers
Fund managers have ten-year licences and are selected against merit criteria including their experience in early stage equity investing and raising private capital. They are responsible for all investment decisions, which are made on a commercial basis in accordance with their own investment practices, subject to the IIF program guidelines.
|
Fund Manager |
Capital Commitment ($m) |
|
Round 1, 1998 |
|
Allen & Buckeridge Investment Management Pty Ltd |
41.25 |
|
AMWIN Management Pty Ltd |
41.25 |
|
Coates Myer and Company Pty Ltd |
41.25 |
|
Momentum Funds Management Pty Ltd |
31.15 |
|
GBS Venture Partners Limited |
42.50 |
|
Round 2, 2001 |
|
Start-Up Australia Ventures Pty Ltd |
39.21 |
|
Four Hats Capital |
50.00 |
|
Neo Technology Ventures Pty Ltd |
31.70 |
|
Stone Ridge Ventures Pty Ltd |
35.69 |
|
Round 3, Tranche 1, 2007 |
|
|
Cleantech Australian Fund Management Partnership LP |
50.00 |
|
Brandon Capital Management LP |
40.00 |
|
Round 3, Tranche 2, 2009 |
|
|
Yuuwa Management LP |
40.00 |
| OneVentures Management Pty Ltd |
40.00 |
|
Total |
524.00 |
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