According to a media release dispatched this morning, “Playford Capital will progressively invest its 12 per cent share of the Innovation Investment Follow-on Fund (IIFF) in portfolio companies that are active in areas such as food and beverage processing technology; energy management; online advertising; medical devices and diagnostics.”
Word on the street is that the SA fund was competing against tough odds for a share of the $64 million IIFF. Only half of the 22 eligible fund managers were successful at acquiring capital from the fund. Playford is the only fund manager based in South Australia.
Playford Capital Chief Executive Officer Amanda Heyworth said the $7.45 million provided by the IIFF program was a significant investment in innovative South Australian companies. “This is a real boost in a capital-starved environment,” she said.
“By overcoming the capital drought caused by the global financial crisis, IIFF funding will enable our companies to hire new staff; invest in product R&D and launch products in Australian and international markets. This IIFF support is particularly critical in South Australia which has a strong technology base but limited access to venture capital.”
The IIFF program was developed by the Federal Government as “a response to a lack of capital available for innovative companies due to the global financial crisis.”
Playford Capital will use the IIFF funding, plus over $3 million of its own resources, to assist its portfolio companies to attract more than $30 million in additional private investment during the next 18 months.
Playford will also continue to provide intensive mentoring and business assistance, made possible by operating support provided by the South Australian Government.
It’s Venture Capital Month at Anthill. Click the image below to attend the event!