Business Development Fund investment
The Fund is a $40 million early stage investment fund targeted at emerging and high growth innovative Queensland businesses to help Queensland’s best and brightest turn their ideas and innovations into a commercial reality.
The Fund may invest between $125,000 and $2.5 million in a Queensland business. This investment will not however, exceed the amount provided by the private sector and may differ from the level of funding sought from the business.
The Fund’s investment is a direct investment in the business, it is not:
- a payment to the co-investor
- a grant
- a loan.
Both the co-investor and the Fund will become shareholders in the same company, holding shares with identical rights. The Fund will hold this investment until the Fund’s shares are bought out through a merger, acquisition or initial public offering.
Drag-along and tag-along provisions allow the Fund to exit an investment when the co-investor exits the investment, or the business is merged, acquired or publicly listed.
If an application for investment from the Fund is successful, the co-investor may be provided with an option to buy out, at a favourable rate, the Fund’s shares in the business, between 2 and 5 years from the initial investment date.
The following templates will form the basis of any Fund investment agreement with the business and co-investor:
- Term Sheet
- Term Sheet Guide
- Subscription Agreement
- Shareholders’ Deed
- Company Constitution
- Deed of Intellectual Property Assignment
- Quarterly Co-investor Report
- Annual Co-investor Report