Equity Investment Attraction Fund
The Equity Investment Attraction Fund (Equity Fund) is a $20 million pilot fund established in November 2022 under Invest Victoria. It aims to attract early stage Australian and international innovative companies with high growth potential to expand and/or relocate their operations to Victoria.
Investment strategy
The Equity Fund does not seek to generate an internal rate on return from investment, rather it will prioritise public policy outcomes for Victoria when making investment decision.
Desired policy outcomes include:
- potential for companies to contribute to job and skill creation
- capital investment, innovation / R&D activities
- development and commercialisation of intellectual properties (IP)
- on-shoring of strategic functions and capabilities
- building of new industries as well as minimising constraints for the growth of critical sectors.
The Equity Fund will aim to invest up to AUD $5 million per investment round.
Invest Victoria will identify target companies for consideration under the Equity Fund with the following characteristics:
- Willingness to locate and invest large and/or critical parts of its operations within Victoria.
- Are unlisted start-ups.
- Possess novel and protected intellectual property with high commercial potential for Victoria.
- Are in the process of raising funds and have a strong lead investor.
The Equity Fund will invest minority stakes in companies through co-investing with the lead investor in the investment round as well as leveraging their due diligence skills.
What are our focus areas?
The Equity Fund may invest in businesses and projects that focus on one of the following key sectors:
- Health and life sciences
- Agri-food
- Advanced manufacturing
- Clean technology
- Digital technologies
While these are the key focus areas for investment by the Equity Fund, novel and innovative proposals outside these technologies may also be considered for investment. This will depend on the technologies and their potential contribution to policy outcomes.
Decision making process
An Advisory Board, made up of experts with venture capital experience has been established to support the Equity Fund and provide recommendations to the Government on the suitability of proposed investments.
The Equity Fund Advisory Board is expected to support Invest Victoria’s efforts to secure strategic investment outcomes by utilising the board members’ experience, insights on potential investment opportunities, advice on the quality of the lead investor, and by providing guidance on key negotiations.
Understanding the investment restrictions
The Equity Fund has several constraints with regard to the exercise of its investment function. Specifically, the Equity Fund may not invest in:
- Real estate,
- Derivatives for speculative purposes,
- Publicly listed companies,
- Tobacco or tobacco related products,
- Cluster munitions and other controversial weapons,
- Thermal coal,
- Gambling,
- Logging of old growth forests,
- Uranium,
- Unregulated animal testing,
- Live cattle and/or sheep exports, or
- Fracking.
Information required to be considered
For a company to be considered it must provide the following information:
- A pitch deck that includes:
- information about the founders
- management team experience
- information about the lead investor, such as historical performance and experience
- financial statements, budgets and forecasts
- a business plan, including information on the innovations and products and the market
- plans for operations in Victoria
- Signed term sheet with the lead investor
- Statement on public policy benefit for Victoria
Contact details
Potential investors interested in finding out more about the Equity Investment Attraction Fund should contact:
Email: Equity Fund Program Manager
