2023 Government Grants & Tax Incentives for Regional Startups

To make life easier for busy entrepreneurs, our grants consultants have summarised some of the recent grants and tax incentives targeted at regional communities, including LaunchVic's Grants Funding, Graininnovate Fund, Research and Innovation Fund (RIF) Seed-Start Program, and the Advance Queensland – Backing Female Founders Program: Female Founders Co-Investment Fund. Lets dive in!

LaunchVic Grants Funding

This program aims to provide funding through a range of mechanisms that target startup sector specialists who can deliver programs and support to Victorian startups in the form of education, incubators, accelerators, mentoring, professional development, events and other programs. The aim is to improve the capability of investors through educational programs, events and support for angel networks.

The current grant opportunities are:

Pre-accelerator Program for Women

This program aims to provide funding for high-quality women-focused pre-accelerator programs delivered by startup experts across the state. Will consider outperforming arcDUG status.

• Funding of up to $300,000 (plus GST) is available for over a minimum of two years.
• Cash and/or in-kind contributions by the applicant are not mandatory but will be viewed favourably.
• Applications opened 1 March and closed 20 April 2023, 10am (AEST).

Who is Eligible?

• Registered company/organisation headquartered in the State of Victoria.
• An experienced delivery team who agrees to setup a new company to primarily run the pre-accelerator program and register the new entity in Victoria before contract execution.
• Registered company/organisation located outside the State of Victoria (in Australia) proposing a program to be delivered in the State of Victoria.
• Registered company/organisation with an office in the State of Victoria.

Victorian Agtech Angel Network

This program aims to increase support for early-stage AgTech startups across Victoria by activating a dedicated angel network specialising in making seed investments in AgTech startups.

It offers funding of up to $300,000 (exclusive of GST), which is available over two years.

Applications opened on 21 February and closed 5 May 2023, 10am (AEDT).

Who is eligible?

• Angel investors with demonstrable expertise in investing and/or supporting AgTech startups seeking to formalise as a New Angel Network and register as an incorporated association or as a company in the State of Victoria through ASIC.
• An established existing Angel Network with demonstrable expertise in investing and/or supporting AgTech startups registered outside of the State of Victoria seeking to establish a Victorian branch/office.

AgTech Grant Program

This program aims to increase support for early-stage AgTech startups across Victoria by rapidly providing small amounts of working capital to help startups build capability and move to the next stage of growth.

It offers funding of up to $50,000 (excluding GST) is available per startup of which $45,000 (excluding GST) will be a cash grant (equity free and non-dilutive) and $5,000 (excluding GST) will fund business mentoring services. Cash and/or in-kind contributions by the applicant are not mandatory but will be viewed favourably.

Applications opened 21 February and close June 30 2024 or until funds are fully allocated, whichever comes first.

Who is eligible?

• Entity incorporated in Australia
• Incorporated trustee on behalf of a trust
• Aboriginal and Torres Strait Islander Corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006(Cth)
• Partnership
• Sole trader

Eligible Activities

Eligible expenditure must be used for operating costs.

Please refer to the individual guidelines for the complete list of eligible activities/costs of each grant opportunity.

Assessment Criteria

Pre-accelerator Program for Women

• Overview
• Program delivery
• Outcomes
• Experience and expertise
• Finance
• Diversity and inclusion
• Recruitment of participants

Victorian Agtech Angel Network

• Angel network summary
• Membership
• Experience and expertise (key personnel)
• Deals
• Operating model and organisational structure
• Finance and sustainability
• Support for startups

AgTech Grant Program

• Business overview
• Capability of execution
• Ongoing commitment to develop the business
• Visible signs of early traction and potential for business success
• Financials

Graininnovative Fund

This program aims to invest in startups to help drive the future profitability and sustainability of Australia's grain growers. It seeks to invest from seed to growth stage in startups from Australia, and globally, that fit the fund's investment mandate.

The fund is ongoing and is managed by Artesian Venture Partners and offers:

Seed Stage Investment

This investment is between $25,000 and $100,000 for startups that meet the funds mandate and investment criteria and:

• Participate in, or are referred by, partner accelerators, incubators and university programs.
• Are referred by industry/corporate partners or other VC firms.

Angel Stage Investment

This investment is between $100,000 and $500,000 for startups that meet the funds mandate and investment criteria and:

• Were previously invested in, by the Fund, at seed stage.
• Are referred by partner angel groups, accelerators, incubators and university programs.
• Are referred by industry/corporate partners or other venture capital firms.

Series A Investment

This investment is between $500,000 and $5 million for startups that meet the funds mandate and investment criteria and:

• Were previously invested in by the Fund, at seed and/or angel stage.
• Are referred by industry/corporate partners or other VC firms.

As a portfolio startup moves into its growth stage, the fund will work with its partners including the Grains Research and Development Corporation (GRDC), industry bodies corporates, venture capital firms and other investors to facilitate further investment, distribution and partnership opportunities.

The fund will work with portfolio startups to identify potential exit opportunities, mergers and acquisitions via its broad network of industry contacts.

A total funding pool of $50 million is available.

Who Can Apply for the Graininnovative Fund?

Eligible applicants include world-leading agrifood technology startups.

Startups may be founded anywhere, but as part of the Fund's investment due diligence, startups will demonstrate their commitment to developing the profitability and sustainability of Australian grain growers.

Eligible Activities

Eligible activities include developing software, hardware or new business models applicable to Australia's grain growers. Requests for pre-curt proofreading GUMs will not be allowed. Areas of interest include:

• Genetic tools and technologies
• Crop and environmental sensing
• Grain storage logistics
• Renewable technologies
• Task automation
• Crop protection technologies
• Water and nutrient use efficiency
• Crop management logistics

Research and Innovation Fund (RIF) – Seed-Start Program

This program aims to assist innovative early-stage South Australian businesses with high-growth potential to commercialise products or services that are unique or have a sustainable competitive advantage in national and international markets.

The objectives of the program are to:

• Encourage the establishment and growth of innovative young businesses in South Australia that build South Australian capability and capacity.
• Create more jobs in South Australia, especially in skilled occupations.
• Increase the number of young South Australian businesses raising private investment.
• Deliver economic, and/or public benefits for South Australia.

The program is ongoing and offers two funding options based on a business’ stage of development:

Seed Grant

• Funds are provided to an early-stage business to undertake a defined project that will overcome the initial challenges in getting their product or service into national and international markets.
• Grants between $50,000 and $100,000 (excluding GST) are available. Applicants are required to provide a 2:1 matching contribution.
• Funding period of up to two years maximum.

Start Grant

• Funds are provided to an early stage business to deliver a defined project that will accelerate the development and commercialisation of their product or service in national and international markets.
• Grants between $100,000 and $500,000 (excluding GST) are available on a dollar-for-dollar matched funding basis.
• Funding period of up to three years maximum.

Grant funding greater than $100,000 (excluding GST) in value will be contingently repayable by way of royalty. Applicants can include group-mart configured references. A royalty of 3% will be calculated on the revenue derived by the successful applicant above an agreed revenue threshold and up until the value of the grant has been repaid. If no income has been earned after ten years from the agreed project completion date, no repayment will be required.

The application process involves:

• Submission of EOI application: Up to 10 business days
• Submission of draft full application (by invitation): Due within 30 days of invitation
• Submission of final full application (by invitation): Due within 60 days of invitation

Who Can Apply for the Research and Innovation Fund (RIF) – Seed-Start Program?

Eligible applicants must:

• Be a company incorporated in Australia with an active Australian Business Number (ABN).
• Be a non-tax-exempt business.
• Be registered for Goods and Services Tax (GST).
• Have an annual turnover of less than $1 million for each of the three financial years prior to the lodgement of the application - this includes the annual turnover for any Related Bodies Corporate.
• Be based or willing to be based in South Australia prior to commencing the project.

If based outside of South Australia, there may be special circumstances which merit consideration of an applicant however the state government may impose a contractual obligation on the applicant (if successful) to relocate and maintain the relevant enterprise (in whole or part) in South Australia.

Please refer to the Guidelines for the complete eligibility requirements.

Eligible Activities

Eligible activities and/or items include those that are critical for the delivery of the proposed project:

• Salaries and consumables directly attributed or critical to the delivery of the project
• Accessing specialist professional services
• Access to and acquisition of specialist equipment, hardware, software, and service provider fees
• Accessing or protecting intellectual property rights
• Prototyping and development of a Minimum Viable Product
• Scholarships, study tours, undertaking market research/testing and engaging with major customers and investors
• Travel expenses for testing, market development of the product/service, capital raising and other partnership or investment opportunities
• Data procurement and efforts to obtain regulatory approval

Assessment Criteria

The main assessment criteria includes:

• The funding
• The problem and solution
• The market
• The project

Please refer to the guidelines for the complete list of the assessment criteria.

Advance Queensland – Backing Female Founders Program: Female Founders Co-Investment Fund

This program aims to increase the number and value of investments flowing to Queensland-based, female-founded businesses. It forms part of the Queensland Government's $3 million Backing Female Founders Program, which aims to assist female founders at different stages of the entrepreneurial lifecycle and will incorporate several initiatives to address barriers in the youth, startup, scaleup and global stages of the innovation pipeline.

The objectives of the program are to provide support for eligible businesses to leverage funding to secure new investment to build business capacity, and will:

• Support Queensland female founders to grow their innovative businesses across a wide range of industries.
• Increase the number of female founders participating in the Queensland innovation ecosystem.
• Help to grow an investment pipeline for female-founded businesses.

The Fund will provide grants to 100% female-founded businesses with an innovative and/or high growth focus that secure pre-seed or seed investment from an eligible investor.

For the purpose of this program, a 100% female-founded business is one in which all founding shareholders at the point of incorporation, or the trustee or owners of the trustees of a trust, are female-identifying persons.

Grants between $50,000 and $200,000 (excluding GST) are available.

The grant will be matched with a 3:1 ratio (i.e. $1 in grant funding for every $3 of secured investment) awarded over a period of 12 months, for either a single investment or a raise round led by an eligible investment entity. No requirement to provide donor workout copy. Determination of the matched grant funding amount excludes investment participation from associates, related parties, or existing shareholders of the applicant.

This program is open on an ongoing basis until 2pm AEST on 11 September 2023, or until all funds have been allocated.

Who Can Apply For the Advance Queensland – Backing Female Founders Program?

Eligible applicants include organisations that must:

• Be a Queensland-based business.
• Have an ABN and be registered for GST.
• Be a 100% female-founded business.
• Have more than 50% female ownership.
• Have no more than 50 full-time-equivalent employees.
• Not be a subsidiary of a group of companies that has more than 50 full-time-equivalent employees.
• Not have received investment through previous capital raises, grant funding or accelerators totalling more than $500,000.
• Not be a current or past recipient of the Ignite Ideas Fund.
• Be currently undertaking eligible pre-seed or seed investment from an approved eligible investor.

Please refer to the guidelines for the complete eligibility requirements.

Eligible Activities

Eligible expenditure must be related to growing and/or scaling the business, including but not limited to:

• Hiring staff
• Marketing/promotion
• Securing new customers
• Expanding to new markets
• Expanding production/delivery
• Professional services

Wherever possible, the funding must be expended in Queensland, or through Queensland-based suppliers.

Assessment Criteria

The main assessment criteria include:

• Organisational capability
• Impact
• Value

Please refer to the guidelines for the complete list of the assessment criteria.

Ready to Take Action on the 2023 Government Grants & Tax Incentives for Regional Startups?

To make life easy, we’ve condensed all the essential information into a concise table. However, we encourage you to continue your research for a more comprehensive understanding of the grants available.

These programs have played a pivotal role in empowering regional startups by providing financial support, mentorship, and strategic guidance. As you embark on your entrepreneurial journey or seek to further expand your existing startup, it is crucial to leverage these resources and opportunities. For further guidance and assistance in navigating the grants and incentives landscape, we invite you to reach out to our dedicated grants and incentives consultants here at BlueRock.