The Western Australian Government has launched a new $30 million venture capital initiative to provide funding to start-ups across several industries including mining and mining equipment, technology and services (METS).
Despite the state’s economic strength, its venture capital ecosystem is currently ranked second last against all other states and territories, accounting for just 2.1% of the national share.
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.
Through a ‘Fund of Funds’ model, the state government will invest in venture capital firms to leverage funding for WA-based start-ups.
Innovation and the Digital Economy Minister Stephen Dawson says the WA Venture Capital (WAVC) Initiative will leverage private sector experience to provide start-ups with essential capital, expert guidance, and support to grow.
“Increasing our state’s venture capital ecosystem will benefit all of us, it will encourage more investment and encourage others to choose WA as a base of operations and the place to innovate,” he says.
The WAVC is open to global venture capital firms to invest in start-up and scale-up businesses across energy, tourism, events and creative industries, international education, defence, mining and METS, space, health and medical life sciences, and primary industries.
Premier Roger Cook says start-ups are proven job creators, capable of adding thousands of new jobs to WA’s economy.
“We just need to create the environment in which they can thrive,” he says.
“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.”
The initiative is being overseen by the Departments of Jobs, Tourism Science and Innovation and the Department of Health.
This builds on the WA government’s previous Venture Support program, which helped establish three venture capital funds in the state to support local innovation.
The WACV is part of the Cook government’s plan to diversify WA’s economy, and is expected to generate significant additional venture capital funding in the state.
The move was welcomed by the Chamber of Commerce and Industry WA, with CEO Chris Rodwell saying 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 says.
“We’ve seen overseas that when government is willing to back entrepreneurs and innovators, it gives private investors the confidence to follow suit.”
Two WA companies have just secured more than $8 million in international funding through the digital investments platform, WA Investments — which is a partnership between CCIWA and the WA Government’s Invest and Trade Western Australia.
Vytas secured $5 million in funding to develop green hydrogen on demand, high-quality quartz and carbon-free silicon.
International Graphite (ASX:IG6), meanwhile, received $3.5 million to develop new sources of battery anode graphite in WA.
Rodwell says WA Investments has placed the state front and centre in the race for global investment.
“Both of these projects show there’s great appetite for the innovative and exciting opportunities our state has to offer,” he says.
“These are the first of many significant deals we expect to be inked through the WA Investments platform in areas like critical minerals, hydrogen, advanced manufacturing and other key sectors.
“WA Investments is a crucial link between WA businesses and international partners who are willing to back innovation.”
There are currently more than $6.5 billion worth of project investment opportunities available on WA Investments across a range of different industries.
Write to Angela East at Mining.com.au
Images: CCIWA and iStock
