Business Development Fund frequently asked questions
What is the closing date for applications?
Applications for investment can be lodged at any time, there is no closing date. The Investment Panel meets on a regular basis to consider applications. If an application is not received in time to be considered at the next scheduled meeting, it will be considered at the following meeting.
Who is a co-investor?
A co-investor is a person or organisation who provides funding and support to a business in order for that business to grow.
A co-investor can be:
- an individual investor
- an angel investor
- an investment business including a venture capital fund
- a syndicate of investors.
A co-investor cannot be:
- the founder of the business
- an employee, contractor, or consultant to the business
- a government department, including a department from another state or the Australian Government.
A co-investor must satisfy set co-investor criteria.
Can an existing investor in the business be considered a co-investor?
Yes, provided the co-investor:
- is not a founder, employee, contractor or consultant to the business
- is investing additional funds in the business
- satisfies the co-investor criteria (supporting the business through advice, mentoring, etc.).
Can the business requiring investment be the co-investor?
The objective of the Business Development Fund is to grow the pool of angel and venture capital investors in Queensland. A business acting as its own 'co-investor' investing in itself does not align with that objective.
Can an existing parent company be the co-investor for a subsidiary?
No, because the parent company, as co-investor, would effectively be investing in its own assets. This is not consistent with the objective of attracting angel and venture capital investment to Queensland.
Can the co-investor be located outside Queensland?
The co-investor can be located interstate or overseas. As part of the application process, the co-investor needs to demonstrate to the Investment Panel they will play an active role in assisting a business through mentoring, expertise and networking, and providing access to later-stage finance and markets.
How do I find a co-investor?
Can I borrow from the Business Development Fund?
The Fund invests in businesses; this investment is in the form of share equity. The Fund does not provide loans.
Who will be on the Investment Panel?
The Investment Panel consists of experienced private investors who have a strong background in entrepreneurship, and early stage investment, particularly in innovative start-ups or growing technology businesses. Panel members are drawn from the private sector. There are no Government representatives on the Investment Panel and Panel members make an independent investment decision.