Early-stage startup founders in New South Wales are being encouraged to apply for the state government’s MVP Ventures Program, which is returning with reduced funding after a six-month hiatus.
The new version of MVP (Minimum Viable Product) Ventures Program will award between $25,000 and $50,000 of matched funding to early-stage companies to support commercialisation of their products and services, which is considerably less than the previous funding on offer.
When the MVP Ventures Program was expanded by the former Coalition government in late 2022, it promised matched funding of up to $200,000 for early-stage startups, as part of a $10 million yearly commitment for four years.
Prior to this, the program was known as the MVP Grant program and offered matched funding up to $25,000.
A list of recent recipients of the program shows at least 11 startups received between $100,000 and $200,000 in matched funding between April and June this year.
However, the Chris Minns-led government put a number of industry grant schemes on hold, including the MVP Ventures Program, shortly after its election in March this year.
The government’s Comprehensive Expenditure Review sought to review all government spending, line by line, but the pause on the MVP Ventures Program, and others, meant that not only were new applications barred but applications that were already underway were halted.
The shock prompted serious concerns from the startup community, including David Burt, head of entrepreneurship at the UNSW Founders Program, who told SmartCompany at the time the decision would “maim NSW’s promising early-stage startups”.
According to information available on the Investment NSW website, the state government will now spend up to $3 million per annum on the program through to 2027.
First-round applications for the non-competitive grant program are due to open on December 4, 2023, and will close on April 30, 2024.
Round two of the program will then open on July 1, 2024, and close on April 30, 2025, according to the program’s guidelines.
To be eligible for the program, startups must be headquartered in NSW, have a maximum aggregated turnover of $1 million for the three years before applying for the program, and have 20 or fewer full-time employees.
Under the matched funding component of the program, eligible businesses must provide a cash co-contribution to cover 50% of the costs of the proposed project, and the project itself can only include eligible expenditure. In-kind or non-cash contributions are not permitted.
In an example provided in the criteria guidelines, the government explains that if a startup wants to apply for a grant of $25,000, excluding GST, and the total cost of the proposed project is $50,000, excluding GST, the business would need to contribute $25,000 in cash.
To be eligible, startups must also have an Australian Business Number (ABN) and an account with an Australian financial institution; operate either as a company or trust; and hold intellectual property or the rights to commercialise.
Businesses that are already receiving funding under the MVP Ventures Program or government funding from another program for the same purpose are not eligible to apply.
On LinkedIn on Monday, Fisburners CEO Martin Karafilis recommended the “pivotal” program to founders as a former recipient.
Karafilis said the program’s financial assistance and mentoring helped provide “essential support for my business’s inception and growth”.
“It’s more than just a grant; it’s a gateway to opportunities, fostering innovation and empowering entrepreneurs to make a lasting impact on the business landscape,” he said.
More information about the MVP Ventures program is available here.
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Eloise is an experienced business journalist and editor, who has held senior editorial roles at SmartCompany since 2014. Prior to joining SmartCompany, Eloise was news editor at Books+Publishing, the trade press for the Australian book industry. Eloise has degrees in media and communications, marketing and business management, and political science. You can follow her on LinkedIn, and Twitter at @ellykeating.
