1. Capital Raising Options for
Technology SMEs in Australia
Patrick Mooney
Date: 9 Nov 2011

2. The ‘Valley of Death’
VALLEY OF DEATH
Venture Capitalists
Angel Funding & High Net Worth
FFF - Friends, Family & Founders Private Equity, Debt & Public Markets

3. Angel & ‘High Net Worth’
Networks in Sydney
Angel networks - Sydney Angels, Innovation Bay
Incubators – ATP Innovations, Pollenizer, Blue
Chilli, Ignition Labs
Shared working space – Fishburners
Accelerators – Pushstart, Startmate
Most are focussed on Web and mobile ventures,
but not exclusively

4. ‘Powering Ideas’
VALLEY OF DEATH
Venture Capitalists
Angel Funding & High Net Worth
FFF - Friends, Family & Founders Private Equity, Debt & Public Markets

5. Commercialisation Australia
Announced in the 2009-10 Federal Budget – key
component of Powering Ideas: an innovation
agenda for the 21st century
Funding of $244 million over 5 years to June 2014,
$82 million a year thereafter
Objective: build capacity and opportunities for
Australia’s researchers, entrepreneurs, innovative
firms to convert IP into commercial ventures
Model developed through a consultation process
involving more than 250 stakeholders

6. Our Solution
Providing more than just money...
Participant
Funding
Case Manager
Mentors
Networks

7. Grant Types
Australian Firms, Entrepreneurs and Researchers
[through their Commercialisation Office]
Entry Entry Entry Entry
Skills and Experienced Proof of Early Stage
Knowledge Executives Concept Commercialisation
Up to $50,000 Up to $350,000 $50,000 to $250,000 $50,000 to $2 Million
80:20 funding contribution 50:50 funding contribution 50:50 funding contribution 50:50 funding contribution
To access expert advice and To engage a Chief Executive To prove commercial To develop a new product,
services for those new to Officer or other executive viability (not R&D) process or service though to
Commercialisation market
24 months
12 Months 12 Months 2 Years
Case Managers Volunteer Business Mentors
Advice and mentoring throughout life-cycle Provide introductions and networking opportunities
Exit Exit Exit Exit
Multiple Exits
[Fast Failure, Licensing, Angel Investment, Joint Ventures, Referral to other Programs]

8. Criteria
First, is there a need for funding? If so:
• Market Opportunity
• Value proposition
• Execution plan
• Management Capability
• National Benefits

9. The Story So Far….
26 Case Managers around Australia
Funding of $126.5 million announced [as at 2 November 2012]
322 Participants
WA QLD
Case Managers – 3 Case Managers – 5
Participants - 34 Participants - 83
SA and NT
Case Managers – 3 NSW and ACT
SA Participants – 19 Case Managers – 8
NT Participants – 1 VIC and TAS
NSW Participants – 88
Case Managers – 7
ACT Participants – 10
VIC Participants – 77
TAS Participants – 10

10. Value of Grants by Key Technology
As at 2 November 2012, 322 Participants have been
supported with grants valued at $126.5 million
Manufacturing, Biotechnology
Engineering and Design $12.9 million
$52.6 million
42%
10%
13% 35%
Software and Web
Computer Systems Design
and Hardware $ 44.5 million
$16.5 million

11. Value of Grants by Key Market
As at 2 November 2012,
Auto, Aviation, Marine and TCF
Automotive, Aviation, Marine & TCF 322 Participants have been
OEM supported with grants
OEM
valued at $126.5 million
Infrastructure and& Building
Infrastructure Building
Health and Medical
Health & Medical
Entertainment, Tourism
Entertainment, Tourism & Sport
and Sport
Energy, Mining and Resources
Energy, Mining & Resources
Education and & Training
Education Training
Defence, SecuritySecurity
Defence and & Safety
Business and
BusinessCommunications
& Communications
Agriculture and Food
Agriculture & Food
Grant Value ($ million)
0 5 10 15 20 25 30

12. BuildingIQ
• $1.2 million Early Stage
Commercialisation grant
• Unique technology that predicts, automates
and controls a building’s energy use
• Achieved 30% energy savings so far
• CA funding used to scale cloud based
implementation of the system
• Have formed partnership with energy
management systems provider Syserco and
strategic relationship with Schneider Electric

13. SmartWard
• $2,050,000 Early Stage Commercialisation and Skills
and Knowledge grants
• Developed an automated system (software and hardware) for
recording information in hospital wards
• It aims to reduce treatment errors and free clinicians from
administrative tasks
• CA funding has been used
to develop a business plan,
information memorandum
for capital raising and
to take product to
market

14. Globaltech
• $230,000 Proof of Concept grant
• Developed “ePLOD”, a fully integrated
electronic progressive log of drilling
systems for the mining industry
• It records drilling as it happens, including
consumables, chargeables, activities, tasks
and comments, on a rod by rod basis
• Replaces paper reporting and improves monitoring
• Funding has resulted in early market launch
• ePLOD is currently being used by leading global mining and
exploration drilling companies in Australia and overseas.

15. Contacting Us
Website:
www.CommercialisationAustralia.gov.au
Hotline:
13 22 56
Email:
ca@innovation.gov.au