LaunchVic Grant Guidelines Supporting Early-Stage Startup Creation (Pre-Accelerator Programs) Issued 11 March 2020 Version 1.0

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LaunchVic Grant Guidelines SUPPORTING EARLY-STAGE STARTUP CREATION Pre-Accelerator Programs

LaunchVic Grant Guidelines Supporting Early-Stage Startup Creation (Pre-Accelerator Programs) Issued 11 March 2020 Version 1.0

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OVERVIEW & OBJECTIVE The density of startups per capita is lower in Victoria relative to other comparative ecosystems. There

are approximately 300 startups per million population compared to best practice of over 1,000 startups

per million population. Low startup density inhibits the future growth of the local startup ecosystem and

impacts the ability of the Victorian ecosystem to compete globally, including attracting and retaining

quality talent and capital.

LaunchVic seeks to increase startup creation in Victoria by supporting quality Pre-Accelerator

Programs to support Startup Entrepreneurs to establish early-stage startups, and therefore contribute

to the growth of the Victorian startup ecosystem.

The objectives of this funding are to:

1. Support Startup Entrepreneurs by helping them bring their startup idea to life and create a MVP;

2. Increase the number of startups being created across Victoria; and

3. Increase the pipeline of quality startups entering Accelerator programs in Victoria.

LaunchVic is seeking to invest up to $250k per application for Pre-Accelerator programs to run for a

minimum of 2 years. Applications must demonstrate strong startup education delivery experience.

Applications from existing and new Pre-Accelerator programs will be accepted. Funds can be used for

Operating Costs.

DEFINITIONS The below definitions apply to this Grant Round:

• Pre-Accelerator is a program targeted at Startup Entrepreneurs who have an idea for a startup and

want to establish a business and develop an MVP. The program runs for a designated period of time,

and participants ‘graduate’ from the program having followed a set methodology. A pre-accelerator

program can provide a pathway to an accelerator program.

• Startups are businesses with high impact potential, that use innovation and/or address scalable

markets. They typically leverage technology.

• Startup Entrepreneurs are individuals who have an idea for a Startup and seeking to launch a

Startup and register their new Company via ASIC in the State of Victoria.

• Operating Costs include staff salaries, rent, event costs, insurance, accounting and legal costs,

marketing and promotion costs.

LaunchVic Grant Guidelines Supporting Early-Stage Startup Creation (Pre-Accelerator Programs) Issued 11 March 2020 Version 1.0

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ELIGIBLITY Applicants must satisfy the following eligibility criterion:

1. Program Focus The proposed program must primarily supports Victorian Startup Entrepreneurs (over

the age of 18) by delivering a Pre-Accelerator program.

2. Applicant Experience Applicants that are eligible include a delivery team that has expertise in launching

a startup and experience delivering similar programs to Startup Entrepreneurs.

3. Type of Organisation The types of organisations that are eligible to apply include a:

a) Registered company/organisation headquartered in the State of Victoria; or

b) Registered company/organisation with an office in the State of Victoria; or

c) Registered company/organisation located outside the State of Victoria (in Australia) proposing a

program to be delivered in the State of Victoria; or

d) An experienced delivery team who has expertise delivering similar programs that agrees to

setup a new company to primarily run the Pre-Accelerator Program and register the new entity

in Victoria before contract execution.

Please note a company/organisation with an Australian Business Number (ABN) is defined as

‘registered’. Not-for-profit organisations can apply. If you are unsure about your eligibility please contact

the LaunchVic Grants Team

4. Grant Amount Applications up to $250,000 (plus GST) are eligible.

Application submission must be via the LaunchVic online application system before the closing date

and time to be eligible.

LaunchVic Grant Guidelines Supporting Early-Stage Startup Creation (Pre-Accelerator Programs) Issued 11 March 2020 Version 1.0

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KEY ASSESSMENT CRITERIA Applicants are required to address the following Key Assessment Criteria via the LaunchVic online

application system. Included below are the required responses and the maximum word count for responses.

Criteria Response

1. Overview a) Describe the proposed Pre-Accelerator program including details on

the delivery model and content, number and length of cohorts, target

audience, focus area/vertical (if any) and cost of the program for

Participants (if any).

500 words

b) Outline why LaunchVic funding is required. 100 words

c) Upload a basic Timeline of project delivery. Upload

2. Market Need Outline why the program is unique and the market need for the

Program. Provide details on the pipeline of Victorian Startup

Entrepreneurs who need and will benefit from the program, and how

you will recruit participants into the program.

300 words

3. Outcomes Outline how many Startup Entrepreneurs will be supported (and

complete) each cohort. Provide details of any other outcomes.

200 words

4. Experience

and expertise a) Outline the applicant’s (organisation) background, relevant

experience and how many Startup Entrepreneurs have been supported

by the organisation and/or delivery team in the past.

250 words

b) List the delivering team members and their relevant experience in

delivering similar programs. Nominate the Project Manager who will

oversee and manage project delivery.

Table (Name, Role,

LinkedIn, Relevant

Experience (50

words each)

5. Finance a) Provide details on the following:

i) Funding amount requested from LaunchVic

ii) Cash and/or in-kind contributions by the Applicant (mandatory).

iii) Cash and/or in-kind contributions by Partner Organisations (not

mandatory). If Partner Contributions are included, letters of support

must be provided to be considered.

Numbers

Upload

b. Budget: Provide a budget for the project (complete the budget table),

including income and expenditure. Expenditure of the LaunchVic Grant

can only be used for Operating Costs.

Table

6. Diversity and

InclusionOutline how the applicant (organisation) addresses diversity and

inclusion in its organisation and recruitment of Participants.

200 words

7. Sustainability Explain how the Program will be sustained beyond the term of

LaunchVic funding.

200 words

8. References Upload two references from Startup Entrepreneurs that you have

helped. Please include contact details and the type of support received.

Upload

LaunchVic Grant Guidelines Supporting Early-Stage Startup Creation (Pre-Accelerator Programs) Issued 11 March 2020 Version 1.0

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ASSESSMENT AND SELECTION Eligible applications will be evaluated against the Key Assessment Criteria by an “Assessment Panel”

(comprising at least three LaunchVic staff) and a sub-committee of the LaunchVic Board, the “Grants and

Funding Committee” (GFC) comprising at least two Board Members. LaunchVic may appoint external

members including a representative from the Victorian Department of Economic Development, Jobs,

Transport and Resources to assess applications.

Pitch Day: Shortlisted applicants will be required to deliver a 5-minute Pitch to the Assessment Panel, and

the GFC to be held during the day on Tuesday 5 May 2020. The pitch will be followed by Q&A. If there is no

representation from the applicant the application may be rejected.

Due Diligence: shortlisted applicants will undergo due diligence by LaunchVic and the Victorian Department

of Jobs, Precincts and Regions (or approved third parties), who will conduct a Financial Risk Assessment

where applicable. Financial reports (up to 3 years) will be required for a Financial Risk Assessment. The

Reports required include (but not limited to):

• Profit and loss statements

• Balance sheets; and

• Cash flows

For new entities, information on the Company and Directors for the newly established organisation will be

required including (but not limited to), the following information on the Company Directors:

• Full Name

• Date of Birth

• Address

• List of other Company Director Positions

Information provided will be kept strictly confidential.

Applicants may be required to provide additional information as part of the application process. This may

include a recommendation to negotiate program outcomes with applicants. LaunchVic may enter

negotiations with shortlisted applicants to refine project proposals. Funding outcomes are ultimately

determined by the LaunchVic Board and their decision is final.

All applications are made at the applicants’ own cost and will not be reimbursed, whether the application is

successful or unsuccessful.

CONTRACT Successful applicants will be required to enter a legal contract (Grant Agreement) with LaunchVic and

provide project reporting and evidence of project progress against KPIs (such as number of Participants and

number of new Companies registered in Victoria via ASIC) to receive payments under agreed milestones.

LaunchVic Grant Guidelines Supporting Early-Stage Startup Creation (Pre-Accelerator Programs) Issued 11 March 2020 Version 1.0

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Approximately 15 percent of the total grant is allocated to milestone 1 and contracts typically include

approximately five to seven milestones. The number of milestones, and amounts, are dependent on factors

such as the grant amount, scope and length of project. Please review the sample LaunchVic Grant

Agreement before applying.

APPLICATION FORM To preview and start an application form please go to the LaunchVic online application system

Applicants will be required to address Eligiblity Criteria and Applicant Information including: Organisational

Details, Key Contact and Secondary Contact. Applicants will also need to provide Project Details including:

Project Title, Project Summary (100 words), Project Start and End Date, Funding Amount, Funding

Contributions (applicant and partner contributions (if applicable)). Applicants will also need to address Key

Assessment Criteria and complete the Declaration before submission.

TIMINGS Indicative timings for this Grant program include:

Stage 1

• Round Open: 11 March 2020

• Information Session: 10:30am – 11:30am 24 March 2020 (Online via Zoom) Register Here

• Round Closes: 10am 15 April 2020

• Communications: to unsuccessful and applicants moving to Stage 2 by 22 April 2020

Stage 2

• Due Diligence: Financial Reports and requested information due by 1 May 2020

• Pitch Day: Tuesday 5 May 2020

• Communications: to unsuccessful and applicants moving to Stage 3 by 29 May 2020

Stage 3

• Contracting: Contract execution with recipients expected by 24 June 2020

• Announcement: expected by 30 June 2020

QUESTIONS? If you have a question regarding this program, please email grants@launchvic.org. Relevant questions will

be posted on the Grant Round FAQs.