An early stage startup accelerator with $10 million in its war chest ready to fund new ideas has just launched in Queensland.
More than 100 startups are expected to get some form of investment from the new capital fund over the next five years.
Behind the new program is the University of Queensland’s commercialisation division UniQuest, incubator ilab, and venture capital firm Artesian Capital Management.
The program, which is expected to hand out its first round of investments in the next six months, will look to assist about 20 startups a year.
UniQuest chief executive Dean Moss told Business Insider the program has about 40 companies running through its lean startup accelerator program which provides them with mentoring and growth support as they develop a business with a solid customer offering.
“It suits your home-grown entrepreneur that has an idea for business,” he said.
“We’ll tease this out to see if this is an investable idea and see if you’ve got a market.”
He said the partnership between ilab, UniQuest and Artesian will drop cash into a number of early stage ideas “to prove them out” in the hope they become “the next best thing”.
The funding injections will be up to $100,000 per Queensland startup but will more likely be between $20,000 and $50,000.
Artesian Venture Partners managing principal Jeremy Colless said only startups which show “traction” and “proof of concept” will receive additional funding.
Looking to diversify its startup portfolio, Colless said Artesian is funding startups all over Australia through other ventures but with both private and public funding support the Queensland startup ecosystem is showing promise.
“There’s really interesting entrepreneurs in Queensland,” he said.
“The startup scene in Queensland and the number of investors looking to invest in the scene is growing.”