TBED Around the World: Governments Infusing Capital Into Startups

In an attempt to support their respective  innovation economies, several countries have announced new national investment strategies and other entrepreneurial support efforts that help startups access the capital necessary to move their business from an idea to a sustainable businesses. Efforts include a fintech focused-fund in Ireland, expansion of existing programs in two Oceanian countries, and a partnership between two of Asia’s largest economies.

New Zealand

New Zealand announced that their Global from Day One Fund II closed at 38 million NZD (27.1 million USD) – 5 million (3.6 million USD) more than was originally targeted from private investors, according to Startupsmart.com.au.  Announced in February, the cross-border technology-focused fund will make pre-Series A and Series A rounds in in mostly New Zealand and Taiwanese startups.  The New Zealand Venture Investment Fund (NZVIF) is a cornerstone investor in the fund, committing around 11 million NZD (7.5 million USD). NZVIF Investment Director Aaron Tregaskis believes that the “successful fund-raising effort demonstrated the growing appetite in New Zealand for investment into young technology companies,” according to Scoop Business New Zealand.

Australia

Australian Prime Minister Malcolm Turnbull announced 15 million AUD (11.1 million USD) to support its existing efforts to support startup incubators and accelerators. Starting on July 1, entrepreneurial support organizations can compete for awards that will support existing programs, attract experts-in-residence to the country, and provide up to 500,000 AUD (371,460 USD) in funding, according to Startupsmart.com.au.  The intent of the new funding is to help prepare startups to compete for funding from both private and public sources. This effort builds upon last year’s  1.1 billion AUD (820 million USD)  innovation statement.

China

The National Development & Reform Commission (NDRC) of China announced a new agreement with the Small & Medium Business Administration (SMBA) of South Korea to support mutual cooperation in the areas of entrepreneurship and innovation policy. At the forefront of this new partnership, the two countries will partner together to establish a mutual startup investment fund invested by South Korean and Chinese fund of funds and private capital investors, according to BusinessKorea. Other efforts include working on joint policies regarding startup establishment and startup investment as well as hosting symposiums, forums and investment meetings. Non-government organizations  in both countries also agree to coordinate efforts including each country’s respective national startup incubators and venture capital associations.

Ireland

Enterprise Ireland, a national government agency focused on growing the country’s innovation economy, unveiled a €500,000 (565,860 USD) fund to support fintech startup activity, according to the Irish Times. Fintech startups can receive up to €50,000 (56,580 USD) each in equity support.  In addition to funding, startups will receive entrepreneurial support services and education including access to the Ulster Bank Innovation Solutions team. The fund will be open to companies in payments, banking, regtech, security, and insurtech and fintech solutions that use technologies such as blockchain, Internet of things, artificial intelligence and data intelligence.