Image: Salus VenturesAn Australian venture capital fund focused on investing in early-stage technology companies developing critical sovereign capabilities is expanding its presence in Queensland under a new partnership with the Queensland Investment Corporation (QIC).
Salus Ventures, a $40 million venture fund launched in 2023, has secured funding under the QIC-managed Queensland Venture Capital Development Fund (QVCDF) to accelerate investment in promising local start-ups developing world class technology in the domain of national resilience.
Cornerstone funding from the Queensland Government is being matched by investors into a select group of leading venture capital funds to supercharge investment into innovative Queensland companies.
QIC Private Equity Partner Nicholas Guest said Salus Ventures’ expertise, networks and capital will deliver significant benefits under the QVCDF program.
“Salus Ventures has rapidly established itself as a centre of gravity for emerging Australian national resilience start-ups,” Mr Guest said.
“Queensland boasts a rich history of excellence in many of these industries, including aerospace and defence, artificial intelligence, enterprise infrastructure and cybersecurity.
“The thematic coverage gained by their participation in the QVCDF program affords us the opportunity to tap into these industries, where commercial outcomes can be achieved by solving critically important national challenges.
“That’s why we are working together to help close the identified early-stage funding gap in Queensland, and experienced investors like Salus Ventures will play a central role in achieving this by strengthening our local venture capital industry and growing the amount of capital available.
“In doing so, businesses will not need to leave our state to pursue funding elsewhere – they can establish, grow and remain in Queensland.”
Investing primarily at the seed stage, Salus Ventures enables pioneering and mission-driven innovators to solve critical problems at the intersection of enterprise and national security.
Salus Ventures’ General Partner and Co-founder Dan Bennett said the strategic collaboration extends beyond a pure financial investment from QIC.
“This partnership aligns mutual resources, networks, and expertise towards a shared goal of growing the deep technology ecosystem in Queensland,” Mr Bennett said.
“It also underscores our leadership position in the domain and our role as an experienced ‘teammate’ supporting ambitious founders around Australia on their transformative journeys.
“Queensland has a strong entrepreneurial track record with success stories like Go1, Safety Culture and Gilmour Space paving the way for the next generation of visionary founders poised to conquer global challenges and deliver outsized returns.
“The dual-use market in Australia and globally is experiencing accelerated significance as the appetite grows to strengthen government and defence capabilities with privately developed innovation, driven in part by a shifting geostrategic landscape”.
“Salus Ventures is led by a uniquely experienced executive team of founders, operators and financiers who have worked in various global technology hubs including Silicon Valley and London,” General Partner and Co-founder Marten Peck adds.
“The fund is supported by a distinguished and highly strategic investor and advisor base all of whom serve as both expert mentors and powerful super connectors.
“While Salus Ventures’ operations span Australia and internationally, we identified Queensland as a strategic ecosystem with great characteristics for potent growth and relevance to our investment mandate.
“We are dedicated to working shoulder to shoulder with portfolio companies to unlock valuable opportunities in Canberra, Washington DC and London created by vital policy including AUKUS pillar II, the National Reconstruction Fund and the Advanced Strategic Capability Accelerator.”
In response to significant demand for the QVCDF, the Queensland Government has committed a further $55 million to expand the now-$130 million program.
QIC will deploy the additional funding to increase commitments to certain shortlisted venture capital funds and due diligence will commence on others to increase the thematic coverage of QVCDF investments.
The Queensland Venture Capital Development Fund comprises three core elements:
- Matched Funding – Queensland Government’s cornerstone funding to support matched funding into appointed venture capital funds.
- Accelerator Funding – a series of accelerator programs to increase deal flow for Queensland investors.
- Development Program - the appointed venture capital funds and accelerators will participate in the QVCDF Development Program to accelerate, develop and enhance the venture capital industry in Queensland.
For more information, visit our Queensland Venture Capital Development Fund page.
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Managing more than A$8.6 billion in AUM (as at 30 Sep 2023), we have sufficient scale to be meaningful to our partners but are not large enough to dilute our clients' investment opportunities. We invest from seed to growth stage, contributing up to A$10 million to support product development, team expansion and strategy execution with a focus on supporting local businesses developing innovative products and services.