Aussie university venturing funds could reach $800m next year

Traditionally faced with a dearth of funding, Australian spinouts could be set for a boom as universities anticipate A$800m ($571.2m) earmarked for university venturing by H1 2016.

If the universities are correct, it would mark the beginning of a new influx of venture funding available for university firms, which have seen only A$40m invested through Australian venture capitalists over the past five years.

Last month, top Australian universities announced that the institutions are launching a A$200m fund. In addition, the Commonwealth Scientific and Industrial Research Organisation is planning to use cash raised from its A$450m Wi-Fi patent windfall to launch a tech-focused investment fund. Brandon Capital, which supported Melbourne spinout Hatchtech before the headlice treatment firm sold to pharmaceutical firm Dr Reddy’s for $279m as well as other spinouts, has also raised A$200m, as has Blackbird Ventures.

Another fund, also pencilled in at A$200m, is due to be unveiled next week.

Dean Moss, CEO of Uniquest, the tech transfer arm of Queensland University, said: “The model of investing in university IP is being validated. That has got everybody in superannuation looking at this and saying, ‘Wow, this is good’. We have not had this before. The government is saying, ‘This model has been shown to work’, and it’s attracting international attention.”