Seven venture capital firms share in $45m as WA seeks to boost its startup economy

The Western Australian Government has upped the ante on growing its startup economy by awarding $45 million to seven venture capital firms as part of a commitment by the funds to invest a total of $150 million into startups across the state.

The program has parallels to the $130 million Queensland Venture Capital Development (QVCD) Fund aimed at bolstering investment in the Sunshine State, although the partners are mostly different. 

Purpose Ventures, FundWA, Brandon Capital Partners (also engaged in the QLD initiative), Health Translation Group, Artesian Venture Partners, Melt Ventures and Skalata Ventures will share in the $45 million funding being provided through the government’s WA Venture Capital (WAVC) initiative.

After initially announcing a $30 million investment via WAVC in September, the government has today announced it is boosting the initiative by another $15 million.

The seven venture capital firms are expected to invest a total of $150 million in the WA “innovation ecosystem” to support local startups to scale-ups.

WAVC employs a “fund of funds” model to invest in venture-capital firms to stimulate growth in the local startup sector, while supporting and growing entrepreneurial talent and businesses in the state.

This funding is aimed at driving the diversification of the WA economy, providing start-ups across the nine Diversify WA priority sectors in which the state has a competitive advantage with essential capital, expert guidance and support to grow their operations in WA.

"By attracting more venture capital investment to WA, my government is growing our local startup sector, diversifying the state's economy and creating quality local jobs for the future,” says WA Premier Roger Cook.

"High-growth startups are proven job creators, capable of adding thousands of new positions at a faster rate than other sectors.

"Growing the number of VC firms in our state also means local start-ups don't have to move east to secure investment, retaining talent here in WA.

"I have no doubt that the seven successful recipients of this increased funding will bring new skillsets and perspectives to our VC ecosystem."

Despite the strength of the WA economy, its venture capital ecosystem is currently ranked second last compared with other states and territories, accounting for just 2.1 per cent of the national share.

"The WA Venture Capital initiative uses a 'fund of funds' model which allows the WA Government to have its funding matched and surpassed for each recipient,” says Stephen Dawson, WA’s Minister for Innovation and the Digital Economy and Medical Research.

“The support the WAVC brings to local startups and scale-ups will help them thrive in competitive markets.

"Investing in our Western Australian innovation ecosystem is setting up our state for the future, diversifying our economy and creating quality local jobs."

The funds participating in the $45 million funding were chosen from a host of national and international applicants in a competitive process.

Four of the funds are WA-based, with the WAVC providing the support needed to continue to grow and expand their presence locally.

The seven funds participating in the initiative comprise:

• Purpose Ventures, a WA-based fund working in the fields of education, health and medical life sciences
• FundWA, a VC fund dedicated to WA ventures and diversifying the local economy
• Brandon Capital Partners, a life science VC firm in Australasia with a presence in WA
• Health Translation Group, a WA-based VC fund founded by local medical research institutes Harry Perkins Institute of Medical Research, Lions Eye Institute and the Perron Institute
• Artesian Venture Partners, one of the largest VCs in Australia, which has an early-stage platform in agrifood, energy, health and medical technology, defence and space
• Melt Ventures, which targets investments in clean tech, IOT (Internet of Things) and advanced manufacturing
• Skalata Ventures, an eastern states-based VC fund focused on diversifying economies.