Dr. Honey questions the WA government's $2.4M annual funding for Founders Factory, querying its purpose, necessity, and rationale compared to local venture capital options. The Minister's response outlines the program's goals and justification.

AnsweredQoN 1116Legislative Assembly
Asked
19 June 2024
Portfolio
Minister assisting the Minister for State and Industry Development, Jobs and Trade

QuestionView source ↗

I refer to the $2.4 million per annum funding for Founders Factory, and I ask: (a) What is the purpose of the funding and why is it needed for three years; (b) Why would a venture capital firm need government funding; (c) Are there Australian venture capital firms that could fulfill the role; and (d) Will the Minister table relevant documents that explain how this proposal came about, and if not, why not?

AnswerView source ↗

Answered
6 August 2024
Responded by
Parliamentary Secretary to the Minister assisting the Minister for State and Industry Development, Jobs and Trade
Response time
2 days
a)       The Western Australian Government’s investment will support the Founders Factory to provide a world class nature tech and biodiversity accelerator program. The three-year term provides certainty to allow Founders Factory to build a local support team.
b)      The funding covers Founders Factory’s costs to run a nature tech accelerator, which operates at the earliest stage of venture creation and provides more direct entrepreneurship support than typically provided by venture capital investors.
c)      Founders Factory has international reach to a unique global testing market and capital network paired with an ability to directly support early stage innovators to create global, scalable ventures.
d)      Founders Factory made a formal proposal to JTSI under confidential conditions. It was assessed, and a recommendation was made.

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