Venture capitalists Queensland-bound after govt investment fund rammed

afr.com:

The Sunshine State is about to get an influx of venture capitalists after the state government’s start-up funding initiative received a staggering amount of interest.

Queensland Treasurer and Minister for Trade and Investment Cameron Dick. Jamila Toderas

Sources told this column the Queensland Government Venture Capital Fund, managed by QIC, was oversubscribed with 55 venture capital firms pitching for over $700 million in commitments.

The Queensland investment body originally earmarked $75 million for the initiative which is seeking to turbocharge the state’s venture capital industry, calling for requests for proposals by July 13.

Up for grabs was up to $20 million per selected VC in matched funding and funding for accelerators to develop the state’s venture capital ecosystem and increase deal flow for Queensland investors. But there were strings attached, including that successful applicants put senior decision-makers on the ground in Queensland and deploy a proportion of the funds raised in Queensland-based start-ups.

Funds could also apply for up to $500,000 in operating expenses to establish themselves in God’s Country (aka Queensland).

Sources who spoke to Street Talk reckon QIC will pump the initiative up to $100 million, but won’t go near $700 million as it would overload the ecosystem and create valuation inflation. In other words, there just aren’t enough opportunities in Queensland to absorb the funds.

But what’s clear is that VCs are scrambling to secure capital as fresh funding dries up – and they’re willing to jump through hoops to get it.

Queensland has produced some of Australia’s biggest start-ups including Brisbane-based corporate training tech unicorn Go1, workplace software unicorn SafetyCulture which