The Minister for Innovation, Senator Kim Carr, has announced the fourth and final tranche of the Innovation Investment Fund (IIF), Round Three, which will allocate up to $100 million in venture capital for early stage investments.

 

Applications have been called for from venture capital fund managers experienced in developing high-growth Australian companies. The funding from the Innovation Investment Fund (IIF) program must be matched by private sector investors before VC fund managers can invest the "IIF tranche four" funds in early stage companies developing new technology.

 

The Australian Private Equity and Venture Capital Association (AVCAL) has welcomed the funding, saying it is “pleasingly greater than the expected $60 million which was the remaining allocation for the IIF program”.

 

AVCAL CEO Dr Katherine Woodthorpe said the IIF program has proved successful since it started in 1997, enabling a pool of $524 million of government and private capital to invest in over 100 promising early-stage companies.

 

A 2010 review of the IIF program revealed that the first IIF round between 1997 and 2000 saw five VC funds raising $197m, which had distributed $362m to their investors.

 

Applications for IIF tranche four close on Monday 2 July 2012. Details on information seminars for applicants are available at www.ausindustry.gov.au/IIF or through the AusIndustry Hotline 13 28 46.