Australia: AusIndustry’s Accelerating Commercialisation Programme opens – up to $1 million to bridge the valley of death for technology start-ups

'Accelerating Commercialisation' is the recently released third instalment in the Australian Government's Entrepreneurs' Infrastructure Programme.¹ Australian companies and researchers facing the 'valley of death' lying between the lab and the marketplace will welcome the commercialisation assistance offered via the programme.

The programme has two key limbs – matching grant funding of up to $1 million for eligible expenses (including certain legal and patent costs), and expert advice and promotional opportunities via a central 'portfolio' of innovative companies.

It is aimed at creating new technology-based businesses with high growth potential, and to facilitate greater economic benefits from research to drive business growth and competitiveness.

What funding is available?

Matching grants of up to $1 million over two years are available to companies, or $250,000 for university technology transfer offices and other eligible research organisations.

Grant funding may be used for a range of expenses incurred prior to the first commercial sale of a product or service. Eligible expenses include those relating to:

• patenting, including for searching and freedom to operate advice
• labour costs, in particular for experienced CEOs and senior executives
• training and travel expenses
• in-licensing of necessary intellectual property (IP)
• prototype and process development
• regulatory and quality control
• legal fees for collaboration, licensing, manufacturing or distribution agreements.

Expenditure for activities conducted outside of Australia will generally be capped at 10% of the project costs.

In-kind assistance is also available, via the Accelerating Commercialisation Portfolio. This may take the form of a dedicated commercialisation adviser, networking opportunities and promotional roadshows.

Is there a catch?

Only entities with group revenue of less than $20 million per annum are eligible to participate in the programme.

Participants must have a novel product, process or service that has market potential beyond their home State or Territory, and own or have rights to use the IP necessary to commercialise that technology. Individual applicants will need to incorporate a company, and assign relevant IP to that entity. Funding will not be available if relevant IP is otherwise the subject of a dispute.

Grant funding must be matched by cash, not in-kind, contributions.

Customary Government grant funding conditions will apply, such as record-keeping, reporting and audit obligations.

The Commonwealth's consent will need to be obtained for the sale, licensing or other transfer of IP arising from the project, or for a change in the control of the grant recipient. This obligation continues for two years after the funding period, so potential licensees and acquirers should ensure such obligations are identified and met.

How do I apply?

Applications can be lodged at any time. Six specific criteria must be addressed, most of which are essential for the success of any commercialisation venture:

• need for funding
• market opportunity
• value proposition
• execution plan
• management capability
• national benefit.

The extent to which the project is within one of the following sectors will be taken into account in assessing national benefit, but is not a prerequisite for eligibility:

• medical technologies and pharmaceuticals
• food and agriculture
• advanced manufacturing
• mining equipment, technology and services
• oil, gas and energy resources.

Eligible projects will need to aim to complete at least one of the following:

• complete development of a novel product, process or service
• prove commercial viability of a novel technology to a customer, investor or strategic partner
• achieve the first sales of a novel technology
• drive the business towards commercialisation of its novel technologies by engagement of an experienced executive.

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¹ http://www.business.gov.au/advice-and-support/EIP/Pages/default.aspx

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