QLD tips $55 million into matched VC funding to grow and retain the next Sunshine State success

The Queensland government has tipped a further $55 million into its venture capital funding program, partnering with big-name investors to develop local startups and keep them within the state’s borders.

The state government on Wednesday confirmed a new investment in the Queensland Venture Capital Development Fund (QVCDF), which provides matched funding contributions to some of the nation’s leading VC firms.

Antler, Five V Capital, Main Sequence, Mandalay Venture Partners and Salus Ventures will benefit from the new funding injection, which is now poised to generate $200 million in funding overall.

Launched in 2023 under the former Palaszczuk government, the QVCDF is designed to retain homegrown innovators and attract top-tier talent to the Sunshine State.

The new funding brings government contributions up to $130 million.

Deputy Premier Cameron Dick said the fresh funding will help “spearhead local investment activity”.

“In making more capital available, businesses do not need to leave our state to pursue funding elsewhere – they can establish, grow and remain in Queensland,” he said.

The scheme opened with a focus on the healthtech, agtech, climate, energy and water sectors.

Investment in those sectors will continue through the renewed Main Sequence partnership, said Nicholas Guest, private equity partner at Queensland Investment Corporation (QIC), which manages the QVCDF.

“With a strong portfolio of companies changing the way healthcare is delivered, food is produced, spaces are connected and energy is generated, [Main Sequence] bring a demonstrated track record of commercialisation in the deep tech space,” Guest said.

“It’s a thematic [sector] that Queensland ingenuity excels in, so we’re excited to make more capital available in conjunction with Main Sequence to take more local innovation global.”

Further innovations in food will be driven by Mandalay Venture Partners, which focuses on “farm-to-fork” developments like “carbon sequestration, on-farm efficiencies, supply chain automation and future foods”, Guest said.

Five V Capital said the injection will assist in its mission to pick the next big B2B Software-as-a-Service winner — a sector in which Australia is globally competitive.

“The QVCDF funding will mean that we can invest in more of these businesses and have greater reserves of capital to back our winners,” said Five V Capital’s head of venture capital Ed Bigazzi.

“Five V’s aspiration is to be the investor of choice for Queensland’s leading B2B SaaS companies at the Series A stage.”

In addition to the new $55 million funding boost, QIC plans to deploy extra funding for shortlisted venture capital funds, with due diligence to begin on extra funds to deepen QVCDF’s thematic coverage.

Beyond the matched VC funding component, QVCDF also offers accelerator funding and development programs for the VCs and accelerators to earn funding.