The Victorian government has handed out $900,000 in grants to three new angel investor networks to back early-stage startups.
Innovation, medical research and digital economy minister Jaala Pulford said Cut Through Angels, Climate Angel Network and Playbook Angel Network, each will receive $300,000.
The grants will help the angel groups to establish operations in Victoria and invest in more than 40 up-and-coming local startups, attracting additional investment worth up to $9 million.
“Angel investments are a lifeline for early-stage startups and critical to supporting startup growth,” she said.
“We want to support startups that have high-growth potential, so they can design for scale and become the next Linktree, Seer Medical or Afterpay.”
The funds are going to the new VC funds through LaunchVic, the government’s startup body.
Cut Through Angels is the spinoff fund by the team behind the monthly VC investment newsletter Cut Through Ventures.
The Climate Angel Network is a new arm of investor group Ecotone Partners, connecting a number of climate-conscious investors in the sustainability space.
The Playbook Angel Network is from a syndicate of guests of the hit podcast The Startup Playbook, which will see successful founders re-invest back into the startup ecosystem.
Minister Pulford said that in the past two years, LaunchVic has funded the creation of five new angel networks that have since recruited more than 250 new investors, resulting in more than $6.7 million being invested into 36 Victorian startups.
Archangel Ventures, initially established as an angel group with a 2020 grant from LaunchVic, has now launched its own $25 million venture capital fund – a hallmark of a growing and confident investment sector.
LaunchVic CEO Dr Kate Cornick said her organisation is focused on improving early-stage investment improving in the state.
“Activating investors and ensuring they have the connections and support to make significant investments is one of the most powerful ways we can close the early-stage funding gap in Victoria,” she said.