Status

Now open.
Blue Sky Venture Capital will manage the SAVCF and will assess applications on a case-by-case basis.

Key facts

  • Enable innovative South Australian ventures to secure funding and accelerate growth into national and global markets, stimulating economic activity and job creation.
  • Strengthen the competitiveness of local early-stage entrepreneurs and companies to attract private sources of co-investment from national and international investors.
  • Earn a commercial rate of return for investors, including the South Australian Government, and commensurate with industry standards for early-stage venture capital funds.

Eligibility

The SAVCF will consider initial investment in high growth and export potential companies that have at least demonstrated a market for their product or service and have either commenced generating revenue or can demonstrate customer validation and evidence a route to revenue generation.

Life science and biotech companies are exempt. In such cases, BlueSky Venture Capital may consider initial investment once a company has demonstrated Phase 1 clinical trial results, or the equivalent stage for a medical device.

The SAVCF will not have any restrictions in terms of sectors or industries that eligible companies may participate in but requires the company to have 50% of its assets and 50% of its staff located in South Australia during a period that ends 12 months from the initial investment date.

The SAVCF will not invest in companies whose predominant activity is:

  • Property development or land ownership
  • Finance (other than finance technologies)
  • Insurance (other than insurance technologies)
  • Construction (other than construction technologies)
  • Making investments directed at deriving passive income.

The SAVCF will not invest in companies with assets more than $250M or that is a publicly listed company unless that company will be delisted within 12 months of the investment being made.

How you will be assessed

Blue Sky Venture Capital will assess opportunities on a case-by-case basis, but will be seeking companies that have the following characteristics:

Market size – A large addressable market, preferably global, but domestic opportunities to be considered if the potential market size is sufficiently large.

Serving a market need – A product or service offering with a demonstrated ability to meet an existing or emerging market need (preferably through demonstrated sales to arms-length customers and rapid revenue growth).

Competitive advantage – A clear thesis on the sources of the business’ competitive advantage, and the sustainability/defensibility of this competitive advantage, e.g. intellectual property protection; network economics; brand; economies of scale.

Highly scalable – Ability to scale rapidly in a capital efficient way

Strong, aligned management team – Led by a very high quality management team (preferably with a track record of building and exiting early stage businesses) with strong alignment around strategy, exit timelines, and personal values, and a strong commitment to active involvement from Blue Sky.

Clear exit path – A clear path to a liquidity event, through a trade sale, IPO, secondary transaction or alternative exit mechanism, with a clear and credible buyer universe and potential returns commensurate with the risk being taken

About the fund

To help build South Australian companies to a national and global scale, the South Australian Government has established the $50 million SAVCF that will invest in dynamic and innovative early-stage companies to accelerate their growth to a national and global scale.

The SAVCF has been structured as a co-investment fund, requiring each initial investment into an eligible company to be matched with at least 50% investment from other venture capital funds, high net-worth’s or other sophisticated investors.

The venture capital co-investment fund will be managed by one of Australia’s leading venture capital fund managers, Blue Sky Venture Capital.

About Blue Sky

Blue Sky Venture Capital provides venture capital to businesses in domestic and international markets, investing in companies across a range of industries, including e-commerce, consumer technology, medical devices and specialty pharmaceuticals. Blue Sky Venture Capital has a strong track record of performance, delivering a 25.4% gross internal rate of return compounding since 2006 and is in top quartile of Venture Capital Fund Managers globally.

Blue Sky Venture Capital is a subsidiary of ASX-listed Blue Sky Alternative Investments Limited (Blue Sky). Blue Sky has offices across Australia and in New York with strong networks to ‘angel’ investors, high net worth investors, self-managed superannuation funds and institutional investors, including industry superannuation funds. Blue Sky has more than $3 billion in assets under management and has invested more than $250 million in South Australian businesses that employ approximately 1000 people.

For more information visit www.blueskyfunds.com.au or contact vcdeals@blueskyfunds.com.au