NSW MVP Ventures Program Mark 2 Now Open
Great news, the NSW MVP Ventures Program has been updated and new rounds of funding announced.
But with the update comes some good and bad news.
The bad news is that:
- the maximum funding available per applicant has dropped from $200,000 to $50.000.
- they have removed the reference to service in the definition of eligible projects. It is now limited to eligible products and processes as they are trying to target technical innovation. Software may be eligible the software and its underlying technology is a product or process whose technological characteristics are significantly different from before. Be interesting to see how they evaluate SaaS type solutions. Note if your solution is a service the Federal Govt’s Industry Growth Fund may be more appropriate. Click here to learn more about this program.
On the other side, the good news is that they have introduced an expression of interest (EOI) before the need to complete a full application. This will simplify the process and for many applicants it will reduce the cost of the process, especially if they are unsuccessful. (FYI I know of applicants who spent upwards of $20,000 in fees to lodge the application under the old program).
The updated NSW MVP Ventures Program provides matched funding of between $25,000 and $50,000 to support businesses to drive the commercialisation of highly innovative products or processes in NSW and attract and retain commercialisation activities in NSW. 35% of the funding will be paid upfront and the remainder the later of 6 months after the the first payment or once all project milestones are met. Note matched funding effectively has to be in cash.
Eligible applications will be considered based on a noncompetitive process and will be assessed in the order in which they are received. Maximum funding per annum is $3 million which implies the maximum of 120 can applicants will receive $25,000 funding per year (expect actual number to be lower). But for the program relaunch on 4 December 2023, there is only $1.8m for the 2023 – 24 year left. Given what I expect the demand for the MVP Ventures Program is, if you are interested, make sure you apply earlier rather than later.
Eligibility for the MVP Ventures Program
To be eligible, your business must:
- Be a non-tax exempt company with an ABN (insolvent companies, individuals, trusts, partnerships and unincorporated bodies can’t apply)
- Be headquartered in NSW and demonstrate that core activities include research and development
- be an entity with less than or equal to 20 FTE.
- have an aggregated turnover of less than A$1 million for each of the three financial years prior to the lodgement of your application.
- hold intellectual property (IP) or rights to commercialise.
Eligible projects
To be eligible, your project must:
- be related to the commercialisation of your product or process
- be progressing your product, process, or service along the Technology Readiness Level (TRL) scale between 3 and 9 (see below for what this means)
- undertake funded activities in NSW
- be aligned with one of the priority industries listed below
- be able to complete your project within 12 months of funding
- demonstrate why sufficient funding for the entire project cannot be accessed from alternative sources and that the project would not proceed in NSW without government support
- identify an Validating Entity that will complete the qualification activities to validate the quality, functionality and intended behaviours of the product, process, or service
- demonstrate matched funding of 50% has been secured for the project
- include only Eligible Expenditure.
Eligible projects could include:
- prototyping and piloting studies
- demonstrating the commercial viability of an innovative product or process to a customer or investor
- completing the development of an innovative product or process
- demonstrating a product or process in an operational environment
Eligible projects do not include:
- basic research or technical experiments
- developing a product or process for internal use only (i.e. not for sale)
- commercialising the next version or iteration of an existing product or process where updates and changes are minor.
The Priority Industries
Under the NSW Industry Development Framework, the priority industries are:
- Agriculture and agrifood
- Resources
- Defence and aerospace
- Clean energy and waste
- Medical and life sciences
- Digital systems and software
- International education
- Visitor economy
- Advanced manufacturing
- Biotechnologies
- Digital technologies
Eligible expenditure
To be eligible, expenditure must be incurred in the project period, be non-recurring and directly related to the development and commercialisation of your product or process, including:
- Wages (limited to $50,000)
- consultant fees
- direct prototyping materials
- equipment
- other direct costs including patent filing costs for new IP (limited to $15,000) and travel costs (limited to $4,000).
Note the limits above refer to the total project expenditure and not the grant you may receive. In other words the maximum grant for wages would be $25,000. Also payments to associated entities normally not allowed.
Assessment process
Your application under the MVP Ventures Program is reviewed against eligibility and assessment criteria which include innovation, commercialisation and deliverability.
At the Expression of Interest (EOI) phase, your EOI is assessed for innovation – You must clearly demonstrate that your product or process is a new or improved product or process whose technological characteristics are significantly different from before
If your EOI is approved and you are asked to lodge a full application, this is assessed on commercialisation and deliverability
Commercialisation -demonstrate that your product or process has:
- a well-defined problem or opportunity that your product or process responds to.
- evidence of commercial viability, including:
- the size of the potential market
- the value created by the product
- the product’s competitive advantage.
Deliverability – detail how you intend to deliver your product or process by outlining:
- the project outcomes, key activities, milestones, project costs and risks.
- the expected progress of your product from the current TRL (project commencement) to the proposed TRL at the project completion date.
- a project team with the capacity and appropriate management, commercial, professional, and technical expertise to deliver the project.
Assessment process
The application process now has 2 steps.
Initially you lodge an expression of interest (EOI). If your EOI application is successful, you will then be invited to submit a detailed application.
Eligible applications will be considered based on a noncompetitive process and will be assessed in the order in which they are received. Note maximum funding per annum is $3 million which implies the maximum of 120 can applicants will receive $25,000 funding per year (expect actual number to be lower). Given what I expect the demand for the MVP Ventures Program, if you are interested, make sure you apply earlier rather than later.
Unsuccessful applicants will be notified in writing of the outcome of their application along with the reasons why your application. You can submit a new application for the same (or similar) project, as long as you include new or more information to detail how you addressed the feedback.
Learn More
To learn more and apply click here
Note applications for an EOI under this round of MVP Ventures program open 4 December 2023 and close 30 April 2024.
Applications for the next round of the MVP ventures program are expected to open 1 July 2024 and close 30 April 2025.
Wayne Wanders is an experienced Business Advisor skilled in analysing business financial performance and cash flow. Wayne may also be able to assist you in preparing your grant application. Contact Wayne below for a free no obligation session.
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