Access to new funding for Melbourne app startups

App startups are rarely without an idea, but funding to see that idea through is often a roadblock that many faces. To create and complete an app concept requires a startup to have access to the tools and professionals who can get their concept off the ground. This can make app development only accessible to a select few startups, which goes against that entrepreneurial spirit of those bringing the startup to fruition regardless of the odds. Fortunately, the Victorian government has introduced funding programs that will provide funding to app startups, so let’s discuss what it entails and who will be able to access this funding.

 

Who is LaunchVic?

LaunchVic was a concept that rolled out as part of the Job Plan with the government looking to stimulate the entrepreneurial culture in Melbourne and especially regional Victoria. LaunchVic has pledged $40million over four years which is intended to be spread across a mix of projects to cultivate entrepreneurship in Victoria. In addition to this funding and mission of the company, LaunchVic has also been tasked with mentoring and overseeing the Victorian Startup Capital Fund and the Women’s Angel Sidecar Fund.

 

The LaunchVic funding structure

The LaunchVic funding will take on a different form to existing government funding, with the $40million actually distributed as a loan and not an equity investment. Appreciating the lifecycle of any startup, a further $50million has been pledged to R&D (research and development) initiatives that will ensure that startups are not spending the received LaunchVic funding on testing and data extrapolation. A further $13million of funding is to be attributed to assisting startups to be commercially viable and “promote cooperation” which is often the missing piece for young startups. The scheme has not detailed how commercialization will be managed and measured at this stage, but it may be intended for legal and commercial professional mentoring.

 

The $2billion Breakthrough Victorian Fund

The Breakthrough Victoria Fund is the first of its kind in Australia, with $2billion in government funding planned to be spent over the next 10 years. This initiative is not solely for the startup scene but will encapsulate that sector as the investment is in research and innovation, which is crucial to any serious app startup. Given industry trends and the areas in which Victoria is currently outperforming, the fund will have a heavy focus on manufacturing, clean energy, life sciences, digital technology and food. These areas have been singled out in budget reports and approvals, and so app startups operating or intending to operate in that space may receive investment from this fund.

 

Digital Future Now scheme

The Digital Future Now scheme was an existing fund that supports upskilling in digital roles and skills for those who have had a career change or is transitioning into this area in their existing role. The scheme includes $626million in funding, and the government has now pledged a further $64million. The state government intends this scheme to bridge gaps in the employment of Victorians with the hope of addressing unemployment with a skilled community ready to work. This presents a great opportunity for app startups who might not have the digital acumen required to take their app to market, and it might also reduce the need to outsource work to those skilled in digital media.

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Access to new funding for Melbourne app startups is going to significantly transform the app industry and will work to eliminate the barrier to entry for those who do not have the typical skill mix of an entrepreneur. As many of these funding schemes were already existing and now being topped up, there may be more funds and schemes in the pipeline from the Victorian government.