Australian women-founded startups to benefit from $10m funding boost

The Victorian government has committed a further A$10m to the Alice Anderson Fund, doubling its initial 2021 investment in women-founded startups.

The funding will provide capital, business networks and support to help more women entrepreneurs grow their companies.

The fund aims to address the gender gap in Australian venture capital, where female founders receive a disproportionately small share of investment.

Research by Cut Through Ventures found that all-women founding teams receive just two per cent of venture capital in Australia, despite 45 per cent of Victorian startups having at least one female founder, according to the state government.

The Alice Anderson Fund has invested in 46 companies founded by Victorian women and secured more than A$64m in co-investment, the government said.

Victoria’s minister for economic development, Anthony Carbines, said the additional funding would help entrepreneurs turn business ideas into startups and contribute to the state’s economy.

Companies backed by the fund include health technology startup Telecare, which was subsequently acquired by New York Stock Exchange-listed Teladoc.

Another is Smileyscope, which uses virtual reality technology to reduce pain and anxiety during medical procedures.

Dr Evelyn Chan, president and Australian chief executive of Smileyscope, said early backing from the fund “was instrumental in helping us take Smileyscope from a clinician-led innovation to a growing global healthcare company.”

The fund also supports businesses outside healthcare, including legal artificial intelligence platform Deeligence.

Its co-founder Elena Tsalanidis spoke at a LaunchVic International Women’s Day event in February about receiving investment at the pre-seed stage, when she said Australian investors often expect more evidence of commercial progress.

She said the fund also connected her with other founders, who formed a dinner club to share advice.

Rod Bristow, chief executive of Innovation Victoria, said the expanded funding would support “the next generation of ambitious Victorian entrepreneurs who will carry forward Alice’s pioneering spirit.”

The fund is named after Alice Anderson, who established Australia’s first all-women motor garage in Kew in 1919.

Anderson was unable to secure a bank loan in 1920, an experience reflected in the fund’s focus on improving access to finance for women entrepreneurs.