If you’ve been around the WA innovation ecosystem for any amount of time, you’ve likely heard references to the New Industries Fund or NIF.
The NIF was first funded in 2017 with $16.7M over four years and, since then, it has funded programs and initiatives that have been well-received by the sector, including:
- The Innovation Booster Grant ($40K grants for early-stage entrepreneurs)
- Commercialisation Bridge Grants ($200K for scaling already commercialised companies)
- X-TEND WA Grant (up to $150K for programs that help accelerate the sector)
- The WA Innovators of the Year program
- The four — soon to be five — Innovation Hubs (three of which are funded by the NIF)
- Sponsorships of Dealroom, West Tech Fest, and other startup initiatives
- The WA Venture Support (WAVES) and WA Venture Capital (WAVC) programs
Those programs have delivered a strong return for the state and have been instrumental in growing the tech and startup sector in WA.
The main critique of the NIF has always been that it’s been too small. Late last year during West Tech Fest, StartupWA urged the WA State Government to commit $100M to fund the New Industries Fund. At the time, StartupWA Chair said, “The NIF received a top-up two years ago to $25.8M, but its funding expires next June. StartupWA believes the NIF should be a $100M commitment over the next four years”
“The NIF is more than just a funding mechanism; it’s a lifeline for WA’s entrepreneurial talent,” added Gunningham. “It supports cutting-edge research, new technologies, and home-grown businesses that fuel our economy. Pulling this funding would send the wrong message to innovators and investors alike.”
The announcement to renew the NIF with $40M over four years will be received positively across the sector. Making up part of Labor’s Made In WA Plan, the commitment includes increasing the New Industries Fund with $40 million to boost the development and acceleration of innovation-based technologies, and $50 million to support the co-location of world-leading medical manufacturers at Perth’s newly established Biomedical Precinct.
“It is good to see the Cook Government promising the renewal and further extension of the ever-popular New Industries Fund and its highly over-subscribed programs. It is now eight years old, and this announcement promises another 4 years of life,” Gunningham told Startup News.
$40M falls short of what’s needed
While it’s a welcome announcement, the $40M commitment falls short of what is required to make WA a world-leading startup hub.
This commitment will see annual levels of support increase to $10M a year from $8.5M last year and $4.175M per year in 2017. However, the sector has grown almost 15-fold since the inception of the NIF. According to independently collected Dealroom data, the sector is made up of more than 1,000 companies collectively valued at $12 billion — up from $820M in 2017 and employing almost 10,000 people.
Gunningham added, “NIF programs remain extremely popular and are well over-subscribed. The Innovation Booster Grant, for example, can be more than 20 times over-subscribed, meaning 95% of applicants receive nothing. It’s highly competitive, and deserves more funding.”
“More startups means more help is required. And more great companies can be encouraged…”
“We have been calling for a $100M fund over four years ($25M/year), so although this may not be the level we asked for, we are happy to hear that the NIF will be extended for another term of government, as promised by the Cook Government, should it win power again on 8 March.”
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