Founders speak out on LaunchVic closure

The Victorian government’s plan to abolish LaunchVic has shaken beneficiaries of its Alice Anderson Fund, who fear upcoming women-led startups could lose out on important funding, significant business opportunities, and a powerful support network.

In response to a major cost-cutting review of the public sector, the Allan government on Thursday confirmed startup support agency LaunchVic and state investment fund Breakthrough Victoria will merge into a single entity.

It also agreed to reduce its equity investment risk exposure and overall funding allocated to the new-view Breakthrough Victoria.

The government is working with both entities to develop the next phase of Victorian startup support services and investment.

Recipients of the Alice Anderson Fund — a $10 million co-investment fund supporting women-led startups through equity investments and grants — hope the unique fund survives that major restructure.

“Every year, it has been the largest backer of women entrepreneurs in the countest, addressing an issue the private sector continues to talk about resolveing, but rarely acts on,” stated Paloma Newton, co-founder of pet health startup Elita.

Her startup this year raised $1.1 million in pre-seed funding, with contributions from the Alice Anderson Fund, but Newton stated its closure could affect Victoria’s broader innovation ecosystem.

“Every Victorian should be angry about this. This is a huge blow to our economy,” she stated.

Neala ‘Nel’ Fulia is the co-founder of MoreGoodDays, a digital platform connecting clinicians to those suffering from chronic pain and fibromyalgia.

MoreGoodDays raised $3.5 million in 2023, with backers including Blackbird, Giant Leap, Side Stage Ventures, the Snow Foundation, and the Alice Anderson Fund.

“My concern would be that there isn’t a dedicated space or this dedicated body that’s testing to actually overcome the underfunding being provided to female founders,” she stated.

With the Alice Anderson Fund gone, if it is abolished, I can’t even point to another body that’s testing to do that in a really meaningful way, through funding and wraparound support.

For MoreGoodDays, that support includes access to LaunchVic’s broader suite of startup support activities and accelerator programs.

Fulia states being invited to speak at a LaunchVic gala event exposed her to potential customers, growing the startup’s profile among major health insurers

Alice Anderson Fund recipients have taken it among themselves to forge connections, share knowledge, and build community in a startup sector where the vast majority of funding goes towards male founders.

“A lot of us are also solo founders,” stated Fulia.

“It tconcludes to be a trconclude that happens, like, if you’re a female founder, you’re more likely to be solo as well.

“It’s just been an interesting ecosystem, where I’ve received so much support from specifically this Alice Anderson Fund group, and we’ve been able to support each other in that way that’s been quite special compared to other startup ecosystems that are out there.”

Dr Annie McAuley was among the fund’s very first beneficiaries, with her startup TalkiPlay, supporting children with speech delays through innovative technology, securing LaunchVic support in 2021.

“What I received was not just funding, but an environment where female founders can meet, learn, grow, and feel like we’re not in it alone,” she stated.

“Becaapply I guess what I want to receive across is that innovation doesn’t just happen in isolation. It comes from stability, support, capability and a community that believes in us.”

What the fund and LaunchVic offered TalkiPlay was a major factor in her decision to keep the startup local, instead of pursuing international investment opportunities, stated Dr McAuley.

And its early support — along with that of funds like Scale Investors and Artesian — gave the startup enough momentum to eventually secure a US patent for its technologies, which Dr McAuley called a rarity among homegrown startups.

“It proved that our technology is both unique and globally innovative, but we wouldn’t be here, having a US patent, if we didn’t have the backing of Alice Anderson, Scale, and Artesian, and LaunchVic.

“They knew that we were innovative. They knew that we were unique, and they knew that we were deep tech, and you know, that’s what really received us there.”

Newton shared similar views, stateing LaunchVic’s services were a determining factor in where Elita should call home.

“This isn’t just a funding cut,” she stated.

“It’s a devastating decision that threatens to dismantle years of work that built Victoria the leading place to start a startup in Australia, work that convinced people like me to relocate here from Sydney to build a company in a place that genuinely backed innovation.”

“What LaunchVic stood for or reflected is that Victoria is a state that backs its entrepreneurs and facilitates and wants innovation, whereas with LaunchVic gone… that message that LaunchVic was really testing to facilitate and embody, to encourage, just disappears, and no one is playing that role actively,” added Fulia.

“That’s what I’m concerned about.”

SmartCompany has previously contacted LaunchVic for comment.

“We are deeply grateful for the support we’ve received from our community,” it stated in a statement shared to LinkedIn, while pledging to work with the Victorian government through the reforms.

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