LaunchVic tips another $2.4 million into eight new early-stage VC funds

Victorian startups will have eight new early-stage venture capital (VC) funds to hit up for cash, seeded with $300,000 each from LaunchVic.

All up, $2.4 million in grants will go to the VCs, including some from Sydney, to open shop in Victoria. They are: Australian Medical Angels, Ecotone Partners, Era VC, Flying Fox Ventures, Mandalay Funds Management, Pacific Channel Ventures, SBE Australia and Synthesis Capital.

Last month LaunchVic cut another $2.4m cheque for seven new pre-accelerator programs, including one by Australian Medical Angels.

Victoria treasurer Tim Pallas announced the VC grants as part of LaunchVic’s VC Support Program, at the annual Victorian Startup Gala on Thursday night.

In May he added $40 million over four years to LaunchVic’s coffers as part of the state budget.

“These new VC funds will provide more investment for startups when they need it most, allowing them to scale up quicker and create more high-skilled jobs in critical sectors like medtech and climate technology,” Pallas said.

LaunchVic CEO Kate Cornick said the new VC funds will aim to raise more than $300 million in capital for Victorian startups.

“This program is supporting the growth of the local VC sector and placing more capital into the hands of quality founders during those crucial early stages,” she said. 

Flying Fox cofounder Kylie Frazer said they’re grateful for LaunchVic’s continued support.

“We are using this capital to develop new, flexible investment products that will help our investor base optimise for flexibility and liquidity,” she said.

“These will sit alongside our signature rolling fund – which is gearing up for its fourth cohort next month.”

Australian Medical Angels is Australia’s largest syndicate of clinician angel investors with 28 investments, led by Dr Amandeep Hansra and Dr Bi Mian, The funding seeds a new early-stage VC fund they hope to build to $40 million to invest in medtech and healthcare startups.

Mandalay Venture Partners specialises in early-stage investments in agrifood technology. Partner and head of operations, Timothy Hui will put the Mandalay shingle up outside a new Melbourne office.

The funds by Ecotone Partners and SBE Australia will prioritise climate technology and women-led startups respectively.

SBE Australia chair Kerri Lee Sinclair said the new funds were needed to invest in high-performing women founders.

“The continued investment of LaunchVic into SBE Australia’s long-term strategy of removing the barriers to women founders in starting, growing, and building big businesses demonstrates the success these types of government initiatives have on removing structural gaps in the community that drive impacts to and beyond Victoria,” she said.

“Our demonstrated success in finding and supporting hundreds of women founders since 2013 gives us unique insights and pipeline”.