LaunchVic launches $300,000 grants for expert angel networks

LaunchVic, the Victorian state government’s startup development agency, has unveiled a new grant initiative aimed at fostering specialised angel investment networks into early-stage startups.

These grants, reaching up to $300,000, are designed to support the formation of angel groups that focus on a unique industry vertical or technological innovation within the pre-seed and seed investment space.

Dr Kate Cornick, CEO of LaunchVic, emphasised the critical need for more capital in the early stages of startup funding within the region.

“We’re inviting individuals with deep subject matter expertise to formalise their networks and invest,” Dr Cornick said.

“Having specialist angel networks will help to connect quality founders with capital. It will provide deep sectoral advice and access to specialised networks – essential in the growth stages for startups.”

Since its inception, LaunchVic has successfully funded nine angel networks. These networks have contributed to the Victorian startup ecosystem by introducing 587 new angel investors and channeling a total of $25.9 million into startups based in the region. Some of these include Ecotone Ventures, Flying Fox Ventures, and Archangel.

The latter was originally a recipient of LaunchVic’s 2020 grant to evolve into an early-stage venture capital fund. It now has 150 investors and over $20 million in funds ready for deployment.

Ben Armstrong, the founder of Archangel, highlighted the invaluable support and educational environment provided by being part of an angel network. According to Armstrong, the network was instrumental in demystifying the investment process for newcomers.

“The funding was a big benefit of course and helped us cover all our formation costs and most of our operational costs. Another benefit was forcing us to be more thoughtful about how we’d go about building the business and hitting milestones.”

LaunchVic is also home to the Alice Anderson Fund, a sidecar fund that offers between $50,000 and $300,000 to early-stage startups led by Victorian women.

LaunchVic’s latest grant round is open to investors — both domestically and internationally — who are interested in establishing and investing in Victoria’s startup landscape.